What is the total manufacturing and purchase cost

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Reference no: EM131931618

Question

Roedel Electronics produces a variety of electrical components, including a remote controller for televisions and a remote controller for VCRs. Each controller consists of three subassemblies that are manufactured by Roedel: a base, a cartridge, and a keypad. Both controllers use the same base subassembly, but different cartridge and keypad subassemblies

Roedel's sales forecast indicates that 7000 TV controllers and 5000 VCR controllers will be needed to satisfy demand during the upcoming Christmas season.

Because only 500 hours of inhouse manufacturing time are available, Roedel is considering purchasing some, or all, of the subassemblies from outside suppliers. If Roedel manufactures a subassembly in-house, it incurs a fixed setup cost as well as a variable manufacturing cost.

The following table shows the setup cost, the manufacturing time per subassembly, the manufacturing cost per subassembly, and the cost to purchase each of the subassemblies from an outside supplier:

Subassembly	Setup Cost ($)	Manufacturing Time per Unit (min.)	Manufacturing Cost per Unit ($)	Purchase Cost per Unit ($)
Base	1000	0.9	0.40	0.65
TV Cartridge	1200	2.2	2.90	3.45
VCR Cartridge	1900	3.0	3.15	3.70
TV Keypad	1500	0.8	0.30	0.50
VCR Keypad	1500	1.0	0.55	0.70

a. Determine how many units of each subassembly Roedel should manufacture and how many units Roedel should purchase. What is the total manufacturing and purchase cost associated with your recommendation?

b. Suppose Roedel is considering purchasing new machinery to produce VCR cartridges.

For the new machinery, the setup cost is $3000; the manufacturing time is 2.5 minutes per cartridge, and the manufacturing cost is $2.60 per cartridge.

Assuming that the new machinery is purchased, determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase.

What is the total manufacturing and purchase cost associated with your recommendation? Do you think the new machinery should be purchased? Explain.

Set up linear programming model and then answer a and b!

Chapter 7 Inreger Linear Progromming Show the how to write constraints that will ensure the team will staff that five or seven employees. The following integer variables should be hel l if team size is 3 0 otherwise 1 if team size is 5 0 otherwise 1 if team size is 7 23. Roedel Electronics produces a variety of electrical components, including a remote troller for televisions and a remote controller for vcRs.

Each controller subassemblies that are manufactured by Roedel a base, a cartridge, and a keypad Both trollers use the same subassembly, but different cartridge and keypad su sales forecast indicates that 7000 TV controllers and 5000 vcRcontrol will be needed to satisfy demand during the upcoming Christmas season. Because only 500 hours of in-house manufacturing time are available, is considering ing some, or all, of the subassemblies from outside suppliers.

If Roedel manufactures a subassembly in-house, it incurs a fixed setup cost as well as a variable manufacturing table shows the setup cost, the manufacturing time per subassembly, he manufacturing cost per and the cost to purchase each of the subassembles from an outside supplier Manufacturing Purchase Cost Manufacturing ssembly Cost (s) Time per Unit (min.) Cost per Unit (s) per Unit (s) 0.9 artridge 1900 3.0 3.15 0.8 a. Determine how many units of each subassembly Roedel should manufacture and bow many units Roedel should purchase. What is the total manufacturing and purchase cost associated with your recommendation? b. Suppose Roedel considering purchasing new machinery vcR cartridges

For the new machinery, the setup cost is S3000: manufacturing time is 25 per cartridge, and the manufacturing cost is per cartridge. Assuming that the new machinery is purchased, determine how many units of each subassembly Reek what is the total and how units of each subassembly Roedel shouldthnsenda tion? Do you manufacturing and purchase cost associated with your ree 24.

Dave has think the new machinery should be purchased? Explain. For s100,000 to invest in 10 mutual fund alternatives with the following fond is diversification, no more than s25.000 can be invested in any one chosen for investment, then at least s10,000 more than two the funds can will be invested in it. No TM file WEB

Reference no: EM131931618

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