Question

Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company's needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows: Component Supplier 1 2 $12 $13 $11 $12 3 $10 $10 Se 2 Each supplier has a limited capacity in terms of the total number of components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two components, if the total number of units ordered is within its capacity. Supplier capacities are as follows: 123 Supplier Capacity 550 1025 825

Answer 1

Applying excel solver on above data:

		Order quantity:
	Component	1	2	3	total qty	constraint	total
	1	200	0	825	1025	=	1025
	2	350	475	0	825	=	825
		550	475	825
constraint	<=	550	1025	825
	slack	0	550	0
		total cost =		20200

from above

	Supplier:
Component	1	2	3
1	200	0	825
2	350	475	0