qm assignment for real

qm assignment for real - F randec Company manufactures,...

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Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and disribution 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 either be manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are given in the following table. Component Manufacturing Cost Purchase Cost Frame $38.00 $51.00 Support $11.50 $15.00 Strap $6.50 $7.50 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: Component Cutting Dept. Milling Dept. Shaping Dept. Frame 3.5 2.2 3.1 Support 1.3 1.7 2.6 Strap 0.8 --- 1.7 Capacity (hours) 350 420 680 a. Which and how many component(s) need(s) to be purchased? Choose one answer. A. Only frames, 1201 B. Straps, 3786 C. Only supports, 2692
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D. Straps, 5000; and supports, 7308 Question 2 Marks: 5 Please refer to Question #1. b. What is the total cost including all components whether manufactured or purchased? Choose one answer. A. $279,753 B. $368,077
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qm assignment for real - F randec Company manufactures,...

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