Question

Cherillee Toys makes a fiberglass tricycle for kids that is composed of three major components: a handlebar-front wheel-pedal assembly, a seat, and frame unit, and rear wheels. The company has orders for 12,000 of these tricycles. The company does not have the resources available to manufacture everything needed for the completion of 12,000 tricycles so it has gathered purchase information for each component.

The following table shows relevant information:

Requirements

Cost to

Manufacture

Cost to

Purchase

Component

Plastic

Time

Space

Front

3

10

2

8

12

Seat/Frame

4

6

2

6

9

Rear wheel (each)

.5

2

.1

1

3

Available

50,000

160,000

30,000

Develop a linear programming model to advise the operations manager of Cherillee Toys how many of each component should be manufactured and how many should be purchased in order to provide 12,000 fully completed tricycles at the minimum cost.

Answer 1

Step-by-step explanation:

We will solve this linear programming problem using Excel -> Solver

Below excel screen prints show approach for the calculation