Question

The Electro-Poly Corporation is the world’s leading manufacturer of slip rings. A slip ring is an electrical coupling device that allows current to pass through a spinning or rotating connection—such as a gun turret on a ship, aircraft, or tank. The company recently received a $750,000 order for various quantities of three types of slip rings. Each slip ring requires a certain amount of time to wire and harness. The following table summarizes the requirements for the three models of slip rings.

	Model 1	Model 2	Model 3
Number Ordered	3,000	2,000	900
Hours of Wiring Required per Unit	2	1.5	3
Hours of Harnessing Required per Unit	1	2	1

Unfortunately, Electro-Poly does not have enough wiring and harnessing capacity to fill the order by its due date. The company has only 10,000 hours of wiring capacity and 5,000 hours of harnessing capacity available to devote to this order. However, the company can subcontract any portion of this order to one of its competitors. The unit costs of producing each model in-house and buying the finished products from a competitor are summarized in the following table.

	Model 1	Model 2	Model 3
Cost to Make	$50	$83	$130
Cost to Buy	$61	$97	$145

Electro-Poly wants to determine the number of slip rings to make and the number to buy in order to fill the customer order at the least possible cost.

For each statement below, determine whether the statement is a decision variable or not.

Group of answer choices

Amount of money company receiving from the order

      [ Choose ]            No, it is not.            Yes, it is.      

Design specification of each ring

      [ Choose ]            No, it is not.            Yes, it is.      

Production amount of each ring

      [ Choose ]            No, it is not.            Yes, it is.      

Cost of production for each ring

      [ Choose ]            No, it is not.            Yes, it is.      

Amount of each ring purchased from the subcontractor

      [ Choose ]            No, it is not.            Yes, it is.      

Purchasing price from the subcontractor

      [ Choose ]            No, it is not.            Yes, it is.      

Production capacity for each ring

      [ Choose ]            No, it is not.            Yes, it is.      

For each statement below, determine whether the statement is an objective of the problem statement or not.

Group of answer choices

Maximizing amount of money company receiving from the order

      [ Choose ]            No, it is not.            Yes, it is.      

Maximizing revenue of the firm

      [ Choose ]            No, it is not.            Yes, it is.      

Minimizing production cost

      [ Choose ]            No, it is not.            Yes, it is.      

Minimizing total cost

      [ Choose ]            No, it is not.            Yes, it is.      

Minimizing purchasing cost

      [ Choose ]            No, it is not.            Yes, it is.      

Maximizing number of unit produced

      [ Choose ]            No, it is not.            Yes, it is.      

Maximizing the utilization of the factory

      [ Choose ]            No, it is not.            Yes, it is.      

For each statement below, determine whether it is a constraint or not.

Group of answer choices

Production cost

      [ Choose ]            Yes, it is.            No, it is not.      

Wiring department capacity

      [ Choose ]            Yes, it is.            No, it is not.      

Harnessing department capacity

      [ Choose ]            Yes, it is.            No, it is not.      

Number of hours required to produce each product

      [ Choose ]            Yes, it is.            No, it is not.      

Minimum production amount

      [ Choose ]            Yes, it is.            No, it is not.      

Number of units purchased from the subcontractor

      [ Choose ]            Yes, it is.            No, it is not.      

Total production and purchasing amount

      [ Choose ]            Yes, it is.            No, it is not.      

Answer 1

Electro-Poly wants to determine the number of slip rings to make and the number to buy in order to fill the customer order at the least possible cost.

There are 2 ways of meeting the demand, a) make the rings b) Buy the finished products from a competitor  

Hence the decision variables are the number of slip rings to make and the number to buy

For each statement below, determine whether the statement is a decision variable or not.

ans:

Amount of money company receiving from the order: No, it is not.

Design specification of each ring: No, it is not.

Production amount of each ring : Yes, it is.      

Cost of production for each ring: No, it is not.

Amount of each ring purchased from the subcontractor: Yes, it is.

Purchasing price from the subcontractor : No, it is not.

Production capacity for each ring: No, it is not.

Electro-Poly wants to determine the number of slip rings to make and the number to buy in order to fill the customer order at the least possible cost.

That is, we want to get the values of the decision variables which would minimize the cost. Hence minimizing the total cost of making+buying the rings is the objective

For each statement below, determine whether the statement is an objective of the problem statement or not.

ans:

Maximizing amount of money company receiving from the order :No, it is not.

Maximizing revenue of the firm:No, it is not.

Minimizing production cost: No, it is not.

Minimizing total cost : Yes, it is.

Minimizing purchasing cost: No, it is not.

Maximizing number of unit produced: No, it is not.

Maximizing the utilization of the factory: No, it is not.

The number of rings ordered of each type is

	Model 1	Model 2	Model 3
Number Ordered	3,000	2,000	900

We need to meet this demand. Hence

constraint 1: The total number of rings of each model, made and purchased, should be equal to the demand

The company has only 10,000 hours of wiring capacity and 5,000 hours of harnessing capacity available to devote to this order.

Constraint 2: The total number of hours of wiring capacity used to produce the rings in-house cannot exceed 10,000 hours

Constraint 3: The total number of hours of harnessing capacity used to produce the rings in-house cannot exceed 5,000 hours

For each statement below, determine whether it is a constraint or not.

ans:

Production cost : No, it is not.

Wiring department capacity : Yes, it is

Harnessing department capacity : Yes, it is.

Number of hours required to produce each product : No, it is not

Minimum production amount : No, it is not

Number of units purchased from the subcontractor : No, it is not

Total production and purchasing amount : Yes, it is.