Simplon Manufacturing Must Decide on the Processes to Use to Produce

question 27

Essay

Simplon Manufacturing must decide on the processes to use to produce 1650 units. If machine 1 is used, its production will be between 300 and 1500 units. Machine 2 and/or machine 3 can be used only if machine 1's production is at least 1000 units. Machine 4 can be used with no restrictions. $$\begin{array} { c c c c c } \text { Machine } & \begin{array} { c } \text { Fixed } \\\text { cost }\end{array} & \begin{array} { c } \text { Variable } \\\text { cost }\end{array} & \begin{array} { c } \text { Minimum } \\\text { Production }\end{array} & \begin{array} { c } \text { Maximum } \\\text { Production }\end{array} \\\hline 1 & 500 & 2.00 & 300 & 1500 \\2 & 800 & 0.50 & 500 & 1200 \\3 & 200 & 3.00 & 100 & 800 \\4 & 50 & 5.00 & \text { any } & \text { any }\end{array}$$ (HINT: Use an additional 0-1 variable to indicate when machines 2 and 3 can be used.)

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Definitions:

Secretarial Skills

Refers to the abilities and competencies required for proficient performance in secretarial and administrative tasks, including typing, organization, communication, and office management.

Seamstresses

Women who sew and make clothing as a profession or hobby, often employing detailed craftsmanship in garment making.

Family Planning

The practice of controlling the number and spacing of children in a family through the use of contraception or other methods of birth control.

Distribution of Wealth

The way in which the wealth of a country or community is divided among its citizens, often highlighting issues of economic equality or inequality.