A Company Needs to Purchase Several New Machines to Meet

question 70

Essay

A company needs to purchase several new machines to meet its future production needs. It can purchase three different types of machines A, B, and C. Each machine A costs $80,000 and requires 2,000 square feet of floor space. Each machine B costs $50,000 and requires 3,000 square feet of floor space. Each machine C costs $40,000 and requires 5,000 square feet of floor space. The machines can produce 200, 250 and 350 units per day respectively. The plant can only afford $500,000 for all the machines and has at most 20,000 square feet of room for the machines. The company wants to buy as many machines as possible to maximize daily production.
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Formulate the LP for this problem.

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Definitions:

Transfer Warranties

Legal assurances given by a seller to a buyer regarding the title, quality, and condition of goods or property being sold.

Check-Collection

The process of receiving and processing checks to obtain payment from the banking institutions on which they are drawn.

Disclaimed

Refused to acknowledge or accept something, especially legal claims or responsibility.

Warranty Liability

The legal obligation of a seller or manufacturer to repair, replace, or compensate for a defective product within a specified time period.