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 3 1 $11 $12 $13 2 $9 $10 $9 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. Supplier 1 2 3 Capacity 700 1,100 900 (a) If the Edwards production plan for the next period includes 1,100 units of component 1 and 900 units of component 2, what purchases do you recommend? That is, how many units of each component should be ordered from each supplier? Component 1, Supplier 1 unitsComponent 1, Supplier 2 unitsComponent 1, Supplier 3 unitsComponent 2, Supplier 1 unitsComponent 2, Supplier 2 unitsComponent 2, Supplier 3 units (b) What is the total purchase cost (in $) for the components? $

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 64P

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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	3
1	$11	$12	$13
2	$9	$10	$9

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.

Supplier	1	2	3
Capacity	700	1,100	900

(a)

If the Edwards production plan for the next period includes 1,100 units of component 1 and 900 units of component 2, what purchases do you recommend? That is, how many units of each component should be ordered from each supplier?

Component 1, Supplier 1 unitsComponent 1, Supplier 2 unitsComponent 1, Supplier 3 unitsComponent 2, Supplier 1 unitsComponent 2, Supplier 2 unitsComponent 2, Supplier 3 units

(b)

What is the total purchase cost (in $) for the components?

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