G-table Company manufactures two types of tables – vinyl and laminate dining tables. The company received an order for 30,000 vinyl tables and 15,000 laminate tables. The company has a choice of manufacturing the tables in house or outsourcing their produ

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G-table Company manufactures two types of tables – vinyl and laminate dining tables. The company received an order for 30,000 vinyl tables and 15,000 laminate tables. The company has a choice of manufacturing the tables in house or outsourcing their production to a third party manufacturer. It costs the company $55 to produce one vinyl table and $85 to produce one laminate table. It costs $67 and $95 to order the vinyl table and the laminate table from another manufacturer, respectively. The production time at each department for every table the company will produce in house is given in the following table ( see picture 1)

Each department’s available hours are limited to: 10,000 , 15,000 and 5,000 for the Cutting department, Covering department and Packing department, respectively.
 1. Develop a mathematical model to this problem (the company interested in minimizing the costs).  2. Solve it in Excel.
 3. How many vinyl and laminate dining tables the company will manufacture in house and how many it will buy from another manufactory?
4. What is the minimum cost?
 5. How much would vinyl tables have to cost in order for the company to consider purchasing these items rather than making them?
6. If the cost to make laminate table increased to $90 per unit, how would the optimal solution change?
7. How much should the company be willing to pay to acquire additional hours in the Covering with overlay department? Explain. 

Please answer each question on a word file and provide your excel worksheet.

    • 5 years ago
    G-table Company manufactures two types of tables – vinyl and laminate dining tables. The company received an order for 30,000 vinyl tables and 15,000 laminate tables. The company has a choice of manufacturing the tables in house or outsourcing their produ
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