A Small Company Makes Only Two Products (X and Y)

question 59

Multiple Choice

A small company makes only two products (X and Y) , with the following production constraints representing two machines and their maximum availability:
2X + 3Y ≤ 18
2X + Y ≤ 10
X ≥ 0, Y ≥ 0
where: X = units of the first product, Y = units of the second product
If the profit equation is Z = $4X + $2Y, the maximum possible profit is:

• A) $20
• B) $21
• C) $18
• D) $24
• E) $14

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Definitions:

Forecast Quality

The accuracy and reliability of predictions regarding future demand, sales, or other market dynamics.

Supply Chains

Complex networks of suppliers, manufacturers, and distributors that produce, handle, and distribute goods and services from origin to consumer.

Safety Inventory

Extra stock kept in storage to guard against uncertainty in demand or supply, ensuring that a company can meet customer orders without delays.

Forecasted Demand

An estimation of the quantity of a product or service that consumers will purchase in the future.