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The following linear programming problem has been written to plan the production of two products.The company wants to maximize its profits.
X1 = number of product 1 produced in each batch X2 = number of product 2 produced in each batch
MAX: 150 X1 + 250 X2
Subject to: 2 X1 + 5 X2 ≤ 200
3 X1 + 7 X2 ≤ 175 X1,X2 ≥ 0
How many units of resource one the first constraint) are used if the company produces 10 units of product 1 and 5 units of product 2?
Ordering Costs
Expenses associated with making an order for goods or services, including administrative costs, shipping charges, and time spent on ordering processes.
Carrying Costs
Expenses associated with holding inventory, including storage, insurance, and obsolescence.
Gadgets
Small electronic or mechanical devices or tools that are innovative and designed for a particular purpose.
Significant Quantities
Items or entities in considerable amounts that are large enough to warrant attention or impact assessment.
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