The Total Weekly Profit (In Dollars) Realized by Country Workshop

question 13

Multiple Choice

The total weekly profit (in dollars) realized by Country Workshop in manufacturing and selling its rolltop desks is given by the profit function ​ ​
Where x stands for the number of finished units and y denotes the number of unfinished units manufactured and sold each week. The company's management decides to restrict the manufacture of these desks to a total of exactly 100 units/week. How many finished and how many unfinished units should be manufactured each week to maximize the company's weekly profit?
​

• A) 40 finished and 60 unfinished units
• B) 60 finished and 40 unfinished units
• C) 10 finished and 90 unfinished units
• D) 50 finished and 50 unfinished units

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Definitions:

Inventory Cost

The total cost associated with holding or storing inventory, including warehousing, insurance, depreciation, obsolescence, and opportunity costs.

Processing Cost

The expenses incurred during the transformation of raw materials into finished products, including labor, materials, and overhead.

Lead Time Demand

Lead time demand represents the total quantity of a product that is demanded by the market during the period it takes to replenish inventory, critical for effective inventory management.

Safety Inventory

Additional stock that is maintained to act as a safeguard against supply and demand uncertainties, ensuring product availability.