The Livermore Manufacturing assembles some equipment used in Amazon distribution centers. One product is called Runningmaster. The assembly of the Runningmaster is made up of four components: a frame, a motor, two supports, and a metal strap. The motors are purchased from an outside vendor, but the frames, supports, and straps may be made by the company or purchased from an outside supplier. The production of the Runningmaster calls for at least 5,250 to be made next month. The manufacturing and purchase costs per unit are as shown: Component Cost of Manufacturing Cost of Purchasing Frame $37 $53 Support $12 $15 Strap $7.5 $8.5 Multiple departments at Livermore Manufacturing are involved in the production process of the components. The time (in minutes per unit) necessary to process in each department and the available (in hours) for these departments are as follow: Component Department Cutting Milling Shaping Frame 3.3 2.3 3.1 Support 1.4 1.8 2.5 Strap 9 Capacity (hours) 375 460 7400 Strap 9 Capacity (hours) 375 460 1.8 710 Use Excel and Solver to formulate your model and solve the problem. Don't forget to convert hours to minutes on the RHS of the manufacturing constraints. Write your response to the questions in the space provided. Be sure to include the Excel spreadsheet and sensitivity report with your paperwork upload. Questions: 1. How many of each component (frame, support, and strap) should be made, and how many purchased? 2. What is the total cost of the manufacturing and purchasing of the components? 3. Based on the information found on the sensitivity report, what is the range of optimality for frames made and supports made? 4. If the company is able to produce an additional frame, what is the $ increase/decrease to the value of the objective function?
The Livermore Manufacturing assembles some equipment used in Amazon distribution centers. One product is called Runningmaster. The assembly of the Runningmaster is made up of four components: a frame, a motor, two supports, and a metal strap. The motors are purchased from an outside vendor, but the frames, supports, and straps may be made by the company or purchased from an outside supplier. The production of the Runningmaster calls for at least 5,250 to be made next month. The manufacturing and purchase costs per unit are as shown: Component Cost of Manufacturing Cost of Purchasing Frame $37 $53 Support $12 $15 Strap $7.5 $8.5 Multiple departments at Livermore Manufacturing are involved in the production process of the components. The time (in minutes per unit) necessary to process in each department and the available (in hours) for these departments are as follow: Component Department Cutting Milling Shaping Frame 3.3 2.3 3.1 Support 1.4 1.8 2.5 Strap 9 Capacity (hours) 375 460 7400 Strap 9 Capacity (hours) 375 460 1.8 710 Use Excel and Solver to formulate your model and solve the problem. Don't forget to convert hours to minutes on the RHS of the manufacturing constraints. Write your response to the questions in the space provided. Be sure to include the Excel spreadsheet and sensitivity report with your paperwork upload. Questions: 1. How many of each component (frame, support, and strap) should be made, and how many purchased? 2. What is the total cost of the manufacturing and purchasing of the components? 3. Based on the information found on the sensitivity report, what is the range of optimality for frames made and supports made? 4. If the company is able to produce an additional frame, what is the $ increase/decrease to the value of the objective function?
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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