Use the Scenario Below to Answer the Following Question(s)

question 49

Multiple Choice

Use the scenario below to answer the following question(s) .
A company makes standard 115-inch-wide rolls of thin sheet metal,and slits them into smaller rolls to meet customer orders for widths of 13,16,and 25 inches.The demands for these widths vary from week to week.From a 115-inch roll,there are many different ways to slit 13-,16-,and 25-inch pieces.
A cutting pattern is a configuration of the number of smaller rolls of each type that are cut from the raw stock.Of course,one would want to use as much of the roll as possible to avoid costly scrap.For example,one could cut seven 16-inch rolls,leaving a 3-inch piece of scrap.Finding good cutting patterns for a large set of end products is in itself a challenging problem.Suppose that the company has proposed the following cutting patterns: Demands this week are 1,000 13-inch rolls,1,430 16-inch rolls,and 1,260 25-inch rolls.The problem is to develop a model that will determine how many 115-inch rolls to cut into each of the six patterns in order to meet demand and scrap.
Define X_i to be the number of 115-inch rolls to cut using cutting pattern i,for i = 1,…,6.
Note that X_i needs to be a whole number because each roll that is cut generates a different number of end items.
-What is the number of 13-inch rolls produced?

• A)1,264 units
• B)1,718 units
• C)1,432 units
• D)1,000 units

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Definitions:

Premium

A sum paid periodically to the insurer by the insured for covering their risk.

Potential Loss

A hypothetical amount of money that a business or individual could lose in the future due to risks.

Risk

The potential for losing something of value or for an undesirable outcome, often assessed in decisions involving finance, safety, and health.

Known Factors

Elements or conditions that are clearly understood or recognized in a given context or analysis.