A Company Produces Three Products Which Must Be Painted, Assembled

question 71

Essay

A company produces three products which must be painted, assembled, and inspected. The machinery must be cleaned and adjusted before each batch is produced. They want to maximize their profits for the amount of operating time they have. The unit profit and setup cost per batch are:
$\begin{array}{ccc}\text { Product } & \text { Profit per unit } & \text { Setup cost per batch } \\\hline 1 & 9 & 500 \\2 & 10 & 600 \\3 & 12 & 650\end{array}$
The operation time per unit and total operating hours available are:
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\underline{\text {Operating Time per Unit}}$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Operating}$
$\begin{array}{lcccc}\text { Operation } & \text { Product 1 } & \text { Product 2 } & \text { Product 3 } & \text { Hours Available } \\\hline \text { Paint } & 1 & 2 & 2 & 400 \\\text { Assemble } & 2 & 3 & 2 & 600 \\\text { Inspection } & 2 & 4 & 3 & 540\end{array}$
Formulate the ILP for this problem.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market, where a beta greater than 1 indicates greater volatility than the market.

Portfolio Beta

A measure of the volatility of a portfolio relative to the market as a whole.

Security A

This is not a specific financial term; often "Security A" could refer to a generic or hypothetical security in examples or educational content.

Firm's Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 means the stock is more volatile than the market, while a beta less than 1 means it is less volatile.