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Frandec Company manufactures, assembles,




Frandec Company manufactures, assembles, and rebuilds material hand 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 is planning a production of 5000 Liftmasters 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.;Component Manufacturing Costs 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 min per unit) required to process each component in each department is given, along with available capacity (in hours) for the three departments.;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 350 420 680;a. Which and how many component(s) need(s) to be purchased?;Choose one answer.;A. Straps, 3786;B. Straps, 5000, and supports, 7308;C. Only frames, 1201;D. Only supports, 2692;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. $368,077;B. $279,753;C. $379,621;D. $336,088;Question 3;Marks: 5;Please refer to Question #1.;c. How many hours of production time is used in Cutting Department?;Choose one answer.;A. 346;B. 350;C. 317;D. 332;Question 4;Marks: 5;Please refer to Question #1.;d. How many hours of production time is used in Milling Department?;Choose one answer.;A. 260;B. 377;C. 420;D. 408;Question 5;Marks: 5;Please refer to Question #1.;e. How many hours of production time is used in Shaping Department?;Choose one answer.;A. 0;B. 680;C. 375;D. 620;6;Marks: 5;Please refer to Question #1.;f. How much should Frandec be willing to pay for an additional hour of time in the Shaping Department?;Choose one answer.;A. $8.65;B. $69.24;C. $47.42;D. $1.15;Question 7;Marks: 5;Doudt Please refer to Question #1.;g. 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?;Choose one answer.;A. No, since none of the departments' capacities can be fulfilled.;B. Yes, the overall cost can be reduced.;C. Yes, however all departments' capacities have to be reduced.;D. No, the overall cost increases.;Question 8;Marks: 5;Please refer to Question #7.;h. Which one of the following is the best alternative for Frandec to improve its position?;Choose one answer.;A. Increase the capacity of one or more departments;B. Purchase another component from a supplier;C. Purchase frames from a supplier for $45 each;D. Increase the hourly salary in one or more departments;Question 9;Marks: 5;Please refer to Question #1.;i. If Frandec needed to increase some of its departments' manufacturing capacity for a lower cost, for which products below the departments capacity would have to be increased?;Choose one answer.;A. Strap only;B. Support only;C. Strap and Support;D. All departments (for all products);Question 10;Marks: 5;Please refer to Question #9.;j. Considering your answer to the previous question, how much total capacity in hours would be deemed necessary in those departments for Frandec to meet its obligations for the next month with the least cost?;Choose one answer.;A. Support, 780;B. Support 780, Strap, 530;C. Frame, 480, Support, 675, Strap, 590;D. Frame, 575, Support, 466.7, Strap, 833.3;Question 11;Consider the following all-integer linear program.;Max 1x1 + 1x2;s.t.;4x1 + 6x2 <= 23;1x1 + 5x2 <= 15;2x1 + 1x2 0 and integer;a. What are the values of the decision variables x1 and x2 for LP Relaxation, respectively?;Choose one answer.;A. 3.875, 1.250;B. 2.825, 3.750;C. 2.825, 4.250;D. 4.125, 3.750;Question 12;Marks: 5;Please refer to Question #11.;b. What is the objective function value for LP Relaxation?;Choose one answer.;A. 6.575;B. 7.875;C. 7.075;D. 5.125;Question 13;Marks: 5;Please refer to Question #11.;c. What are the values of decision variables x1 and x2 for all integer solution, respectively?;Choose one answer.;A. 4, 1;B. 4, 2;C. 5, 2;D. 5, 1;Question 14;Marks: 5;Please refer to Question #13.;d. What is the objective function value with the all-integer solution?;Choose one answer.;A. 7;B. 4;C. 5;D. 6


Paper#32106 | Written in 18-Jul-2015

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