Amelia Ltd. 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 48,000 of these trikes. Current schedules yield the following information. Requirement s Cost to Cost to Component Plastic Time Space Manufacture Purchase Front 12 40 8 16 24 Seat/Frame 16 24 8 12 18 Rear wheel (each) .20 8 .4 2 6 Available 100000 320000 60000 The company obviously does not have the resources available to manufacture everything needed for the completion of 24000 tricycles so has gathered purchase information for each component. 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 24000 fully completed tricycles at the minimum cost.
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
3) Amelia Ltd. 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 48,000 of these trikes. Current
Requirement
s Cost to Cost to
Component Plastic Time Space Manufacture Purchase
Front 12 40 8 16 24
Seat/Frame 16 24 8 12 18
Rear wheel (each) .20 8 .4 2 6
Available 100000 320000 60000
The company obviously does not have the resources available to manufacture everything needed for the completion of 24000 tricycles so has gathered purchase information for each component. 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 24000 fully completed tricycles at the minimum cost.
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