A Wedding Caterer Has Several Wine Shops from Which It $\le$

question 28

Multiple Choice

A wedding caterer has several wine shops from which it can order champagne. The caterer needs 100 bottles of champagne on a particular weekend for 2 weddings. The first supplier can supply either 40 bottles or 90 bottles. The relevant decision variable is defined as
X₁ = the number of bottles supplied by supplier 1
Which set of constraints reflects the fact that supplier 1 can supply only 40 or 90 bottles?

• A)X₁\(\le\) 40 Y₁₁, X₁ \(\le\) 90(1 - Y₁₁)
• B)X₁ = 40Y₁₁ + 90Y₁₂, Y₁₁ + Y₁₂\(\le\) 1
• C)X₁ = 40Y₁ + 90(1 - Y₁), Y₁ = 0 OR 1
• D)X₁ = 40Y₁₁ + 90Y₁₂, Y₁₁ + Y₁₂ = 1

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Definitions:

Acid-test Ratio

A stringent test that measures the liquidity of a company by comparing its most liquid assets (excluding inventory) against its short-term liabilities.

Receivable Turnover

A financial ratio that measures how efficiently a company collects on outstanding accounts receivable during a particular period.

Inventory Turnover

A financial ratio indicating how many times a company has sold and replaced inventory over a period.

Current Ratio

It's a measure of a corporation's capability to meet its immediate financial obligations using its current assets.