A Company That Makes the Rocket Widget Has One Machine

question 37

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 should be to minimize costs.
• D)None of these statements will help plan production using optimization modeling.

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