Problem No. 2 Elvish Electronics markets four different products that it hires s
ID: 342882 • Letter: P
Question
Problem No. 2 Elvish Electronics markets four different products that it hires subcontractors to assemble to its specifications. The table below showe the cost in pesos per unit for subcontracting the assembly of the four products. Subcontractor Product 400 300 500 700 500 600 400 400 500 500 300 300 600 2 300 400 The capacity of each contractor is limited so that no subcontractor can assemble more than one product a. Assuming that the number of units for each product is equal, how should the four jobs be assigned to the four subcontractors? b. How would your answer to (a) be affected if subcontractor C reduces the cost to assemble product 1 to P200/unit? C. How would your answer to (a) be affected if subcontractor B increases the cost to assemble product 2 to P500/unit? d. How would your answer to (c) be affected if the number of units to be assembled varied with the products as follows Product Number of Units 10,000 40,000 15,000 10,000 2 3
Explanation / Answer
Since each contractor can assemble only one product and the quantity of each product is equal, then in order to minimize cost,
Answer A)
Product 1 will be assembled by Subcontractor A
Product 2 will be assembled by Subcontractor B
Product 3 will be assembled by Subcontractor D
Product 4 will be assembled by Subcontractor C
Answer B)
Product 1 will be assembled by Subcontractor C
Product 2 will be assembled by Subcontractor A
Product 3 will be assembled by Subcontractor D
Product 4 will be assembled by Subcontractor B
ANSWER C)
Product 1 will be assembled by Subcontractor A
Product 2 will be assembled by Subcontractor D
Product 3 will be assembled by Subcontractor B
Product 4 will be assembled by Subcontractor C
ANSWER D)
The priority to choose the contractor will be given to high quantity product to minimize the cost.
Product 2 will be assembled by Subcontractor B
Product 3 will be assembled by Subcontractor D
Product 1 will be assembled by Subcontractor A
Product 4 will be assembled by Subcontractor C
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