Problem
A company produces three different types of wrenches: W111, W222, and W333. It has a firm order for 2,000 W111 wrenches, 3,750 W222 wrenches, and 1,700 W333 wrenches. Between now and the order delivery date, the company has only 16,500 fabrication hours and 1,600 inspection hours. The time that each wrench requires in each department is shown in the table at the bottom of this page. Also shown are the costs to manufacture the wrenches in-house and the costs to outsource them. For labeling considerations, the company wants to manufacture in-house at least 60% of each type of wrench that will be shipped. How many wrenches of each type should be made in-house and how many should be outsourced? What will be the total cost to satisfy the order?
