Roedel Electronics produces tablet computer accessories, including integrated keyboard tablet stands that connect a keyboard to a tablet device and holds the device at a preferred angle for easy viewing and typing. Roedel produces two sizes of integrated keyboard tablet stands, small and large. Each size uses the same keyboard attachment, but the stand consists of two different pieces, a top flap and a vertical stand that differ by size. Thus, a completed integrated keyboard tablet stand consists of three subassemblies that are manufactured by Roedel: a keyboard, a top flap, and a vertical stand. Roedel's sales forecast indicates that 7,000 small integrated keyboard tablet stands and 5,000 large integrated keyboard tablet stands will be needed to satisfy demand during the upcoming Christmas season. Because only 500 hours of in-house manufacturing time are available, Roedel is considering purchasing some, or all, of the subassemblies from outside suppliers. If Roedel manufactures a subassembly in-house, it incurs a fixed setup cost as well as a variable manufacturing cost. The following table shows the setup cost, the manufacturing time per subassembly, the manufacturing cost per subassembly, and the cost to purchase each of the subassemblies from an outside supplier. Subassembly Setup Cost ($) Manufacturing Time per Unit (min.) Manufacturing Cost per Unit ($) Purchase Cost per Unit ($) Keyboard 1,000 0.9 0.40 0.65 Small top flap 1,200 2.2 2.90 3.45 Large top flap 1,900 3.0 3.15 3.70 Small vertical stand 1,500 0.8 0.30 0.50 Large vertical stand 1,500 1.0 0.55 0.70 (a) Determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. (Let xi be the number of subassemblies i manufactured by Roedel, and let yi be the number subassemblies i purchased from outside suppliers, for i = 1, ..., 5.) (x1, x2, x3, x4, x5, y1, y2, y3, y4, y5) = What is the total manufacturing and purchase cost (in dollars) associated with your recommendation? $ (b) Suppose Roedel is considering purchasing new machinery to produce large top flaps. For the new machinery, the setup cost is $3,000; the manufacturing time is 2.5 minutes per unit, and the manufacturing cost is $2.60 per unit. Assuming that the new machinery is purchased, determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. (Let xi be the number of subassemblies i manufactured by Roedel, and let yi be the number subassemblies i purchased from outside suppliers, for i = 1, ..., 5.) (x1, x2, x3, x4, x5, y1, y2, y3, y4, y5) = What is the total manufacturing and purchase cost (in dollars) associated with your recommendation? $ Do you think the new machinery should be purchased? YesNo

Roedel Electronics produces tablet computer accessories, including integrated keyboard tablet stands that connect a keyboard to a tablet device and holds the device at a preferred angle for easy viewing and typing. Roedel produces two sizes of integrated keyboard tablet stands, small and large. Each size uses the same keyboard attachment, but the stand consists of two different pieces, a top flap and a vertical stand that differ by size. Thus, a completed integrated keyboard tablet stand consists of three subassemblies that are manufactured by Roedel: a keyboard, a top flap, and a vertical stand. Roedel's sales forecast indicates that 7,000 small integrated keyboard tablet stands and 5,000 large integrated keyboard tablet stands will be needed to satisfy demand during the upcoming Christmas season. Because only 500 hours of in-house manufacturing time are available, Roedel is considering purchasing some, or all, of the subassemblies from outside suppliers. If Roedel manufactures a subassembly in-house, it incurs a fixed setup cost as well as a variable manufacturing cost. The following table shows the setup cost, the manufacturing time per subassembly, the manufacturing cost per subassembly, and the cost to purchase each of the subassemblies from an outside supplier. Subassembly Setup Cost ($) Manufacturing Time per Unit (min.) Manufacturing Cost per Unit ($) Purchase Cost per Unit ($) Keyboard 1,000 0.9 0.40 0.65 Small top flap 1,200 2.2 2.90 3.45 Large top flap 1,900 3.0 3.15 3.70 Small vertical stand 1,500 0.8 0.30 0.50 Large vertical stand 1,500 1.0 0.55 0.70 (a) Determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. (Let xi be the number of subassemblies i manufactured by Roedel, and let yi be the number subassemblies i purchased from outside suppliers, for i = 1, ..., 5.) (x1, x2, x3, x4, x5, y1, y2, y3, y4, y5) = What is the total manufacturing and purchase cost (in dollars) associated with your recommendation? $ (b) Suppose Roedel is considering purchasing new machinery to produce large top flaps. For the new machinery, the setup cost is $3,000; the manufacturing time is 2.5 minutes per unit, and the manufacturing cost is $2.60 per unit. Assuming that the new machinery is purchased, determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. (Let xi be the number of subassemblies i manufactured by Roedel, and let yi be the number subassemblies i purchased from outside suppliers, for i = 1, ..., 5.) (x1, x2, x3, x4, x5, y1, y2, y3, y4, y5) = What is the total manufacturing and purchase cost (in dollars) associated with your recommendation? $ Do you think the new machinery should be purchased? YesNo

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Roedel's sales forecast indicates that 7,000 small integrated keyboard tablet stands and 5,000 large integrated keyboard tablet stands will be needed to satisfy demand during the upcoming Christmas season. Because only 500 hours of in-house manufacturing time are available, Roedel is considering purchasing some, or all, of the subassemblies from outside suppliers. If Roedel manufactures a subassembly in-house, it incurs a fixed setup cost as well as a variable manufacturing cost. The following table shows the setup cost, the manufacturing time per subassembly, the manufacturing cost per subassembly, and the cost to purchase each of the subassemblies from an outside supplier.

Subassembly	Setup Cost ($)	Manufacturing Time per Unit (min.)	Manufacturing Cost per Unit ($)	Purchase Cost per Unit ($)
Keyboard	1,000	0.9	0.40	0.65
Small top flap	1,200	2.2	2.90	3.45
Large top flap	1,900	3.0	3.15	3.70
Small vertical stand	1,500	0.8	0.30	0.50
Large vertical stand	1,500	1.0	0.55	0.70

(a)

Determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. (Let

x_i

be the number of subassemblies i manufactured by Roedel, and let

y_i

be the number subassemblies i purchased from outside suppliers, for

i = 1, ..., 5.)

(x₁, x₂, x₃, x₄, x₅, y₁, y₂, y₃, y₄, y₅) =

What is the total manufacturing and purchase cost (in dollars) associated with your recommendation?

(b)

Suppose Roedel is considering purchasing new machinery to produce large top flaps. For the new machinery, the setup cost is $3,000; the manufacturing time is 2.5 minutes per unit, and the manufacturing cost is $2.60 per unit. Assuming that the new machinery is purchased, determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. (Let

x_i

be the number of subassemblies i manufactured by Roedel, and let

y_i

be the number subassemblies i purchased from outside suppliers, for

i = 1, ..., 5.)

(x₁, x₂, x₃, x₄, x₅, y₁, y₂, y₃, y₄, y₅) =

What is the total manufacturing and purchase cost (in dollars) associated with your recommendation?

Do you think the new machinery should be purchased?

YesNo

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