A Company Is Developing Its Weekly Production Plan

question 80

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
What is the objective function for this problem?

• A) MAX: 17 X₁ + 21 X₂
• B) MAX: 17 X₁ + 21 X₂ − 60 Y₁ − 80 Y₂
• C) MIN: 17 X₁ + 21 X₂ − 60 Y₁ − 80 Y₂
• D) MIN: 60 Y₁ + 80 Y₂

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