A Company That Makes the Rocket Widget Has One Machine

question 9

Multiple Choice

A company that makes the rocket widget has one machine capable of producing this unique item.The machine requires an attendant,who works 40 hours a week for $12 per hour and has made himself available for a maximum of 8 hours of overtime.It costs $20 per hour to run the machine and it is capable of producing 10,000 rocket widgets per hour.The widgets sell for $10 per hundred and cost $1 per hundred in materials.If the production manager wishes to develop a sales and operations plans using an optimization model,which of the following statements is valid?

• A)The objective function should limit overtime to less than 8 hours per week.
• B)The objective function should maximize the amount of rocket widgets produced.
• C)The objective function must be to minimize costs.
• D)None of these statements will help plan production using optimization modeling.

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Definitions:

Monetary Valuation

The process of determining the financial value of an asset, a company, or an intangible property.

Bailor

A bailor is someone who temporarily hands over control of property to another, known as the bailee, but retains its ownership.

Bailee

A person or entity that temporarily holds property belonging to another under a bailment agreement, often with a duty to care for it.

Personal Property

Any property that is not land or permanently affixed to the land.