The Westfall Company Has a Contract to Produce 10,000 Garden

question 3

Essay

The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain.Westfall has four different machines that can produce this kind of hose.Because these machines are from different manufacturers and use differing technologies,their specifications are not the same.

a.This problem requires two different kinds of decision variables.Clearly define each kind.
b.The company wants to minimize total cost.Give the objective function.
c.Give the constraints for the problem.
d.Write a constraint to ensure that if machine 4 is used,machine 1 cannot be.

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Definitions:

Net Realizable Value

The estimated selling price of goods, less the costs of their sale or disposal.

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on payments.

Operating Expense

Costs necessary for maintaining the day-to-day operations of a business, excluding costs associated with the production of goods or services.

Net Price Method

A pricing strategy that applies discounts and allowances to the gross price to determine the final sale price.