White & Becker Tools (W&B) requires 2,000 electric motors next month for its product li motor is composed of three components: a coil, a shaft, and housing. W&B has the c components or purchase them from an outside vendor. The costs of producing them and p in the following table.
White & Becker Tools (W&B) requires 2,000 electric motors next month for its product li motor is composed of three components: a coil, a shaft, and housing. W&B has the c components or purchase them from an outside vendor. The costs of producing them and p in the following table.
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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![Problem-3:
White & Becker Tools (W&B) requires 2,000 electric motors next month for its product line of weed trimmers. Each
motor is composed of three components: a coil, a shaft, and housing. W&B has the capability to produce these
components or purchase them from an outside vendor. The costs of producing them and purchasing them are shown
in the following table.
COMPONENT
Coil
Shaft
Housing
PRODUCTION
COST PER UNIT
Fabrication 0.5
0.4
Molding
Inspection
0.2
$2.60
$1.80
$1.40
The components that are produced by W&B must pass through three departments: fabrication, molding, and
inspection. The number of hours each component requires in each department and the total number of hours available
next month in each department are shown in the following table:
0.2
0.7
PURCHASE
COST PER UNIT
DEPART- COIL SHAFT HOUSING AVAILABILITY
MENT
(HR.) (HR.)
(HR.)
(HR.)
$3.12
$2.16
$1.68
0.6
0.3
0.4
3,000
3,000
1,800
In order to determine the number of components that will be produced and the number that will be purchased, W&B
has set the following goals, in rank order:
Rank 1: The total costs to produce and purchase components next month should not exceed $14,000.
Rank 2: Idle time in the fabrication department should be minimized.
Rank 3: At least 200 coils should be purchased from the vendor next month.
Determine the number of components produced and purchased next month, according to these ranked goals.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc3a14d3-17e0-4f1a-b937-89b06afdc692%2F0b9a016f-03ac-4597-8e46-ea6aa5722fcc%2F3u70pom_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem-3:
White & Becker Tools (W&B) requires 2,000 electric motors next month for its product line of weed trimmers. Each
motor is composed of three components: a coil, a shaft, and housing. W&B has the capability to produce these
components or purchase them from an outside vendor. The costs of producing them and purchasing them are shown
in the following table.
COMPONENT
Coil
Shaft
Housing
PRODUCTION
COST PER UNIT
Fabrication 0.5
0.4
Molding
Inspection
0.2
$2.60
$1.80
$1.40
The components that are produced by W&B must pass through three departments: fabrication, molding, and
inspection. The number of hours each component requires in each department and the total number of hours available
next month in each department are shown in the following table:
0.2
0.7
PURCHASE
COST PER UNIT
DEPART- COIL SHAFT HOUSING AVAILABILITY
MENT
(HR.) (HR.)
(HR.)
(HR.)
$3.12
$2.16
$1.68
0.6
0.3
0.4
3,000
3,000
1,800
In order to determine the number of components that will be produced and the number that will be purchased, W&B
has set the following goals, in rank order:
Rank 1: The total costs to produce and purchase components next month should not exceed $14,000.
Rank 2: Idle time in the fabrication department should be minimized.
Rank 3: At least 200 coils should be purchased from the vendor next month.
Determine the number of components produced and purchased next month, according to these ranked goals.
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