Question

The Flying Weinberg make skateboards of many types, from beginners to experts. They do custom painting.

	Alpha	Beta	Omega	Projected	Capacity
No. ordered	3000	2000	900
labor Cast & Assembly	2.0	1.5	3.0	11700	10000
Painting	1.0	2.0	1.0	7900	5000
Cost to build in house	50	83	130
Cost to outsource	60	97	145

They have made a bad mistake; the hours projected for each step is greater than the company capacity.

However, there is a way out – they can outsource the manufacturing. It’s more expensive, but they don’t have much in the way of choices.

The goal is to minimize the overall cost. You must fulfill the order.

How many boards for each product will you build in house?

How many boards for each product will you outsource?

What is the total cost?

How much money was lost due to outsourcing?

Answer 1

Date __I__I__ Solution Particulars Labour Cast & Assembly painting ... Projected Hours £1700 hours 7900 hours soou howls Available Capacity Exeens Requirement 10000 hours 1700 hours 2900 hours I statement of Porticulars. Manufacturing Cast outsourcing - cost Gap - Rank Cost Gap. and Rank for manufacturing Alpha Beta Omega. 50 83 130 60 97 145 10 14 15 I I I

I statement of optimum Mox Rank. Product Required Howls. I. Omega 3600 900 x(3 + 1 hours) Remaining Hiss. 11400 I Beta. 4400 7000 2000 x1-5+ 2 hows) m TV Alpha. 44000 1466-67 +(2+2 hours) - (Balancing figure) No. of Boards for each product preferred for manufacture Alpha 1466 Boards. Beta. 2000 Boards. Omega 900 Boards.

Date_ ) Ni I No.of Boards foreach product for outsouling, Alphen - 534 Boards - Beta - Nil - Omega - Nil V statement of Total cost Porticulars. Alpho, Beke. Omego. Total Manufacturing 73300 16000 217,000 356300 Outsoulcing 32040 - - 32040 105340 166000 7.7000 388340

l Money lost due to Outsourcing. bost money : 10x534 Boards 0 : 5340 Bounds.