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Bus 220 Assig2-Pr 3 PP

Bus 220 Assig2-Pr 3 PP - Problem 3 Frandec Company...

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Problem 3 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 either be manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown.
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Manufacturing and purchase costs per unit Component Manufacturing Cost Purchase Cost Frame $38.00 $51.00 Support 11.50 15.00 Strap 6.50 7.50
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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. Problem 3 cont.
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Departments involved with production DEPARTMENT Component Cutting Milling Shaping Frame 3.5 2.2 3.1 Support 1.3 1.7 2.6 Strap 1.8 --- 1.7 Capacity (hours) 350 420 680
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