A Chocolate Making Company Largely Produces One Particular Type of Crunchy

question 42

Essay

A chocolate making company largely produces one particular type of crunchy chocolate bar. Only one of two machines, Machine-1 or Machine-2, can be used to produce this chocolate bar on any given day. The maintenance costs incurred on these two machines per day are $100 and $120, respectively. The manufacturing cost per chocolate bar is $2.5 for Machine-1 and $2 for Machine-2. The maximum daily production capacity for Machine-1 and Machine-2 are 1100 and 1250, respectively. Demand requires that at least 1000 chocolate bars be produced per day. Develop and solve an binary integer programming model for minimizing the total cost.

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Definitions:

Residual Dividend Policy

Residual Dividend Policy is a strategy where a company pays dividends to shareholders from the residual or remaining equity only after all project capital needs are met.

Dividend Market

is a sector of the financial market focused on the buying and selling of dividends or dividend-paying stocks, reflecting investors' interest in income-generating investments.

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time to assess the profitability of an investment.

Stock Repurchase Program

A plan initiated by a company to buy back its own shares from the marketplace, reducing the number of outstanding shares.