Operations Management: Optimization – #320

Question: Tots Toys makes a plastic tricycle 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 trikes.

As indicated in the table below, the company obviously does not have the resources available to manufacture everything needed for the completion of 12000 tricycles, so it has arranged to purchase additional components, as necessary. Develop a linear programming model to tell the company how many of each component should be manufactured and how many should be purchased in order to provide 12000 fully completed tricycles at the minimum cost.

Component Plastic Time Space Cost to Manufacture Cost to Purchase
Front 3 10 2 8 12
Seat/Frame 4 6 2 6 9
Each rear wheel .5 2 .1 1 3
Available 50000 160000 30000


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