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

question 17

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 25-inch rolls produced?

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

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Definitions:

Float Management

The practice of managing the time between when a check is deposited and when it clears, to optimize the use of funds.

Target Cash Balance

The optimal amount of cash a company seeks to maintain to handle operational and transactional needs efficiently.

Carrying Costs

Expenses associated with holding inventory, including storage costs, insurance, and loss due to obsolescence.

Shortage Costs

Expenses incurred from inventory deficits, including lost sales and additional costs for expedited shipping.