Simplon Manufacturing Must Decide on the Processes to Use to Produce

question 16

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:

Maintenance-Free

Products or systems designed to operate without needing regular maintenance or care from the user.

Misrepresentation

The act of providing false or misleading information with the intent to deceive in a contractual agreement.

Rescission

A legal remedy that cancels or annuls a contract, returning the parties to their positions before the agreement.

Clean Hands

A doctrine in equity law that ensures parties seeking equitable relief must be free of wrongdoing in the matter before the court.