Monday, 23 June 2014
Edwards manufacturing company purchases two component parts from three different suppliers.
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) is as follows: Supplier 1 Supplier 2 Supplier 3
Component 1 $12 $13 $14 Component 2 $10 $11 $10 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 # of units is within
its capacity. Supplier capacities are as follows: Supplier: 1 2 3
Capacity: 600 1000 800 If the Edwards production plan for the next
period includes 1000 units of component 1 and 800 units of component 2,
what purchases do you recommend? What is the total purchase cost for the
components? You must provide a complete LP formulation.
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