ABSTRACT
Nowadays, quantitative methods help managers begin the intricate and complex problems of business and industry. These methods can be used to set up resources efficiently, project long-term capital requirements, forecast demand and estimate client preferences. Quantitative methods present an analytical and objective approach to decision making.
In our coursework exercise, theoretically we are the production manager and the company has asked us to specify a manufacturing and purchase plan to meet the demand for the components at a minimum cost.
We are working for the Masters Manufacturing Company and the problem is that our company is planning is planning to satisfy demand of 5,000 units for a stapler in the coming planning period. Each stapler is made of 3 components: a base, a staple cartridge and a handle. Until now Masters has manufactured all 3 components. However the firm may not have enough production capacity to meet all demand and so is considering making an arrangement with another company, Ova Engineering, to make some of the components and Masters will then purchase them. Masters currently have 02 bases, 80 cartridges and no handles in stock, which can be used to help satisfy the demand.
The production time requirements at Masters are given in the following table:
Department Production Time (Hours) Time Available (Hours)
Base Cartridge Handle
Cutting 0.02 0.01 0.04 400
Drilling 0.03 0.01 0.03 400
Finishing 0.01 0.02&nbs ...