Problem 4-11 (Algorithmic) Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have...

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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 $10 $14 $10
2 $12 $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 650 925 800
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.
$ ____________

	Supplier
Component	1	2	3
1	$10	$14	$10
2	$12	$12	$10

Supplier	1	2	3
Capacity	650	925	800

Answer & Explanation Solved by verified expert

4.4 Ratings (589 Votes)

Here as per the given data the number of units for component 1 is 1025 and for the component 2 is 852 units as given above the suppliers 1 and 3 offers at lower price than supplier 2 supplier 1 can supply 650 units of component 1 now the remaining units are 1025650 375 units supplier 3 can supply the remaining 375 units See Answer

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