Table 10-7 The Elastic Firm Has Two Products Coming on the Market

question 53

Multiple Choice

Table 10-7
The Elastic Firm has two products coming on the market: Zigs and Zags.To make a Zig,the firm needs 10 units of product A and 15 units of product B.To make a Zag,they need 20 units of product A and 30 units of product B.There are only 2,000 units of product A and 3,200 units of product B available to the firm.The profit on a Zig is $4 and on a Zag it is $6.Management objectives in order of their priority are:
(1) Produce exactly 50 Zigs.
(2) Achieve a target profit of at least $750.
(3) Use all of the product B available.
Let X₁ = number of Zigs,X₂ = number of Zags.
d₁^- = underachievement of Zig goal
d₁⁺ = overachievement of Zig goal
d₂^- = underachievement of profit target
d₂⁺ = overachievement of profit target
d₃^- = unused product B
d₃⁺ = additional amount of product B needed
-In the goal programming problem described in Table 10-7,how is the goal of producing exactly 50 Zigs expressed?

• A)X₁ + d₁⁺ = 50
• B)X₁ - d₁⁺ = 50
• C)X₁ + d₁^- = 50
• D)X₁ - d₁^- = 50
• E)X₁ + d₁^- - d₁⁺ = 50

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Definitions:

CRM

Customer Relationship Management, a strategy and software for managing a company’s interactions with current and potential customers.

Order Fulfillment

The complete process from point of sale to delivery of a product to the customer, including processing, picking, packing, and shipping.

Marketing

The activities, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

SRM

Supplier Relationship Management (SRM) is the systematic, strategic coordination of business processes between an organization and its suppliers to optimize the value delivered through the supply chain.