As a Supervisor of a Production Department, You Must Decide

question 125

Multiple Choice

As a supervisor of a production department, you must decide the daily production totals of a certain product that has two models, the Deluxe and the Special.The profit on the Deluxe model is $12 per unit and the Special's profit is $10.Each model goes through two phases in the production process, and there are only 100 hours available daily at the construction stage and only 80 hours available at the finishing and inspection stage.Each Deluxe model requires 20 minutes of construction time and 10 minutes of finishing and inspection time.Each Special model requires 15 minutes of construction time and 15 minutes of finishing and inspection time.The company has also decided that the Special model must comprise at least 40 percent of the production total.What is an appropriate objective function?

• A)Maximize 2D + 2.5S
• B)Maximize 12D + 10S
• C)Maximize 4D + 2.5S
• D)Maximize 100D + 80S

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Definitions:

Creditworthiness

Creditworthiness is an evaluation of an individual's or company's ability to repay a debt based on their financial history and current financial status.

Provisions

Estimates of future costs or liabilities that a company recognizes on its financial statements, reflecting expected obligations.

Conflicts of Interest

Situations where an individual's or organization's responsibilities or interests conflict, potentially compromising decision-making or actions.

Default Risk

The risk that a debtor will not make the required payments on their obligations, leading to financial loss for the creditor.