A Company Produces Three Types of Glue on Two Different

question 64

Essay

A company produces three types of glue on two different production lines.Each line can be utilized by up to six workers at a time.Workers are paid $550 per week on production line 1 and $950 per week on production line 2.For a week of production it costs $1,050 to set up production line 1 and $2,050 to set up production line 2.During a week on a production line each worker produces the number of units of glue shown in the table below: Each week at least 120 units of glue 1,at least 150 units of glue 2,and at least 200 units of glue 3 must be produced.Determine how to minimize the total cost of meeting weekly demands.

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Definitions:

Working Capital

The gap between a firm's present assets and liabilities, showing how liquid it is in the short run.

Investment Project

An investment project represents a series of cash inflows and outflows aimed at generating a return over time, typically involving the purchase of assets or investment in ventures.

Discount Rate

In DCF evaluations, the applied rate to ascertain the contemporary value of expected future cash inflows.

Net Present Value

The difference in now-value of cash inflow versus outflow throughout a definite timeline.