Larkin Industries Manufactures Several Lines of Decorative and Functional Metal

question 24

Essay

Larkin Industries manufactures several lines of decorative and functional metal items.The most recent order was for 1200 door lock units for an apartment complex developer.The sales and production departments must work together to determine delivery schedules.Each lock unit consists of three components: the knob and face plate,the actual lock itself,and a set of two keys.Although the processes used in the manufacture of the three components vary,there are three areas where the production manager is concerned about the availability of resources.These three areas,their usage by the three components,and their availability are detailed in the table below. ​
A quick look at the amounts available confirms that Larkin does not have the resources to fill this contract.A subcontractor,who can make an unlimited number of each of the three components,quotes the prices below. ​
Develop a linear programming model that would tell Larkin how to fill the order for 1200 lock sets at the minimum cost.

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Definitions:

Waiting Lists

Lists of individuals or entities that are waiting to receive a service, product, or opportunity, often used when demand exceeds current supply or capacity.

RFP Process

The procedure by which a company invites selected vendors or contractors to submit proposals on a specific product or service.

Value Creation

is the process through which businesses generate value for customers, shareholders, and society, often leading to competitive advantage.

Product Specification Stage

The phase in product development where detailed descriptions of a product's attributes, features, and performance criteria are defined.