Problem 4-11 (Algorithmic)
Edwards Manufacturing Company purchases two component parts fromthree different suppliers. The suppliers have limited capacity, andno one supplier can meet all the company’s needs. In addition, thesuppliers charge different prices for the components. Componentprice data (in price per unit) are as follows:
| Supplier |
|---|
| Component | 1 | 2 | 3 |
|---|
| 1 | $12 | $13 | $10 |
| 2 | $15 | $12 | $10 |
Each supplier has a limited capacity in terms of the totalnumber of components it can supply. However, as long as Edwardsprovides sufficient advance orders, each supplier can devote itscapacity to component 1, component 2, or any combination of the twocomponents, if the total number of units ordered is within itscapacity. Supplier capacities are as follows:
| Supplier | 1 | 2 | 3 |
|---|
| Capacity | 525 | 975 | 900 |
|---|
If the Edwards production plan for the next period includes 1025units of component 1 and 825 units of component 2, what purchasesdo you recommend? That is, how many units of each component shouldbe ordered from each supplier? Round your answers to the nearestwhole number. If your answer is zero, enter "0".
| Supplier |
|---|
| 1 | 2 | 3 |
|---|
| Component 1 | | | |
|---|
| Component 2 | | | |
|---|
What is the total purchase cost for the components? Round youranswer to the nearest dollar.
$Â Â
