A Company Is Developing Its Weekly Production Plan

question 48

Multiple Choice

A company is developing its weekly production plan. The company produces two products, A and B, which are processed in two departments. Setting up each batch of A requires $60 of labor while setting up a batch of B costs $80. Each unit of A generates a profit of $17 while a unit of B earns a profit of $21. The company can sell all the units it produces. The data for the problem are summarized below. ​ The decision variables are defined as
X_i = the amount of product i produced
Y_i = 1 if X_i > 0 and 0 if X_i = 0
Using the approach discussed in the text, what is the appropriate value for M₁ in the linking constraint for product A?

• A) 2
• B) 3
• C) 16
• D) 12

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An ancient system of writing used by Egyptians, composed of symbols and pictures to represent words and sounds.

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