Problem 9-17 Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four com

Problem 9-17

Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandec’s production schedule calls for 5000 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown.

Three departments are involved in the production of these components. The time (in minutes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows:

1. Formulate and solve a linear programming model for this make-or-buy application. How many of each component should be manufactured and how many should be purchased? If required, round your answers to one decimal place.

   Let	FM = number of frames manufactured
   	FP = number of frames purchased
   	SM = number of supports manufactured
   	SP = number of supports purchased
   	TM = number of straps manufactured
   	TP = number of straps purchased

2. Min

   fill in the blank 1FM

   fill in the blank 2FP

   fill in the blank 3SM

   fill in the blank 4SP

   fill in the blank 5TM

   fill in the blank 6TP

   s.t.

   3.5FM

   fill in the blank 7SM

   fill in the blank 8TM

   ≤

   fill in the blank 9

   fill in the blank 10FM

   1.7SM

   ≤

   fill in the blank 11

   fill in the blank 12FM

   fill in the blank 13SM

   1.7TM

   ≤

   fill in the blank 14

   FM

   fill in the blank 15FP

   ≥

   fill in the blank 16

   SM

   fill in the blank 17SP

   ≥

   fill in the blank 18

   TM

   fill in the blank 19TP

   ≥

   fill in the blank 20

3. 
   FM, FP, SM, SP, TM, TP ≥ 0.

   	Manufacture	Purchase
   Frames	fill in the blank 21	fill in the blank 22
   Supports	fill in the blank 23	fill in the blank 24
   Straps	fill in the blank 25	fill in the blank 26

5. What is the total cost of the manufacturing and purchasing plan? When required, round your answer to the nearest dollar.
   $  fill in the blank 27

6. How many hours of production time are used in each department?

   Department	Hours of production time used
   Cutting	fill in the blank 28 hours
   Milling	fill in the blank 29 hours
   Shaping	fill in the blank 30 hours

8. How much should Frandec be willing to pay for an additional hour of time in the shaping department?
   $  fill in the blank 31

9. Another manufacturer has offered to sell frames to Frandec for $45 each. Could Frandec improve its position by pursuing this opportunity?
    
   Why or why not?
   The input in the box below will not be graded, but may be reviewed and considered by your instructor.