San Diego State University Operations And Supply Chain Management Assignment Help - Linear

Question - Benson Electronics manufactures three components used to produce cell telephones and other
communication devices. In a given production period, demand for the three components may exceed
Benson’s manufacturing capacity. In this case, the company meets demand by purchasing the
components from another manufacturer at an increased cost per unit. Benson’s manufacturing cost
per unit and purchasing cost per unit for the three components are as follows:


Manufacturing times in minutes per unit for Benson’s three departments are as follows:


For instance, each unit of component 1 that Benson manufactures requires 2 minutes of production
time, 1 minute of assembly time, and 1.5 minutes of testing and packaging time ...Read More . For the next
production period, Benson has capacities of 360 hours in the production department,
250 hours in the assembly department, and 300 hours in the testing and packaging department.
a. Formulate a linear programming model that can be used to determine how many units of each
component to manufacture and how many units of each component to purchase. Assume that
component demands that must be satisfied are 6000 units for component 1, 4000 units for component
2, and 3500 units for component 3. The objective is to minimize the total manufacturing and
purchasing costs.
b. W hat is the optimal solution? How many units of each component should be manufactured and
how many units of each component should be purchased?
c. Which departments are limiting Benson’s manufacturing quantities? Use the dual price to determine
the value of an extra hour in each of these departments.
d. Suppose that Benson had to obtain one additional unit of component 2. Discuss what the dual price
for the component 2 constraint tells us about the cost to obtain the additionalunit. ...Read Less

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