Instructions and guidelines (Read carefully)
business
Description
| 1. Instructions and guidelines (Read carefully) | ||||||||||
| Instructions | ||||||||||
1. Insert your name and surname in the space provided above, as well as in the file name. Save the file as: First name Surname M5 U2 Activity Submission – e.g., Lilly Smith M5 U2 Activity Submission. Please ensure that you use the name that appears in your participant profile on the Online Campus. |
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2. Submit your assignment in Microsoft Excel only. No other file types will be accepted. |
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| IMPORTANT NOTICE: Please ensure that you have checked your program calendar for the due date for this assignment. | ||||||||||
| Guidelines | ||||||||||
1. There are 2 sheets in this workbook: Instructions and Answer 1. |
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2. Answer each question in its corresponding answer sheet. Make sure that you have carefully read and fully understood each question before answering it. Answer the question fully but concisely and as directly as possible. |
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3. Answer the question in your own words. Do not copy any text from the notes, readings, or other sources. The assignment must be your own work only. |
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| 2. Point allocation | ||||||||||
| The question is worth 20 points. However, you will only receive
a final percentage and will not be given individual points for the sections
of the question. The point allocation is there to show you the weighting and
length of each question. |
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| Question 1 | 20 points | |||||||||
| TOTAL: | 20 points | |||||||||
| 3. Question | ||||||||||
| You are the owner of a company, called AltGen, that produces and markets alternators and generators in the North American market. Your company has recently received a large order from a preferred customer for alternators and generators. Each alternator and generator requires specialized wiring and bolts to produce. The table below summarizes the requirements of demand, bolts, and wiring per unit of alternator and generator. | ||||||||||
| Alternator | Generator | |||||||||
| Number of units ordered from customer | 5000 | 3000 | ||||||||
| Wiring: Yards required per unit | 2 | 1.5 | ||||||||
| Bolts: Number required per unit | 4 | 8 | ||||||||
| At the moment, you company does not have the production capacity and parts required to fulfill the entire order. The company only has 6,000 yards of wire available and only 30,000 bolts. The company is, however, able to outsource some of its production for this order to a subsidiary in San Francisco, called GenAdd. The cost of production for both companies are: | ||||||||||
| Alternator | Generator | |||||||||
| Cost to produce in-house | $ 50 | $ 60 | ||||||||
| Cost to buy in | $ 60 | $ 80 | ||||||||
| In the corresponding answer tabs provided, answer the following question based on this information: | ||||||||||
| Question 1 | ||||||||||
| How many alternators and generators should AltGen produce itself, and what number of these products should it purchase from GenAdd in order to fill the customer demand at the lowest possible cost? | ||||||||||
