Reference no: EM132168278

Trudeau Industries is an industrial contractor involved in the production of precision machined parts. Trudeau has received an order for 2,000 units per week of each of the following four parts:

Fly Wheel              Drive Pulley                   V Pulley                 Fan Pulley

FW12                     DP23                              VP421                    FP17 

Each of the four parts can be made in-house. The time needed to process each part using the company machines is detailed below:

CUTTING MILLING GRINDING POLISHING FINISHING

FW12 18 - 12 25 20

DP23 - 40 32 75 34

VP421 20 80 53 54 -

FP17 24 - - 30 10

Each machine operates on a production run of 80 hours per week.

Trudeau Industries can subcontract out the production of the four parts, but subcontracted parts are considerably more expensive than parts produced in-house, as shown in the following table of cost per unit:

IN-HOUSE COST SUBCONTRACTED COST

FW12 40.00 63.50

DP23 65.00 99.00

VP421 37.50 55.20

FP17 32.00 45.00

Questions for Trudeau Industries Case

1. Formulate a linear program to minimize Trudeau Industries weekly cost of obtaining the four parts.