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When conducting robust optimization
I. Use the maximum value of each objective function coefficient for a maximization problem.
II. Use the minimum value of each objective function coefficient for a maximization problem.
III. Use the maximum value of each objective function coefficient for a minimization problem.
Prime Costs
The combined costs of direct labor and direct materials involved in the production of goods.
Factory Overhead
includes all the indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of indirect labor.
Direct Labor
The labor costs directly associated with the manufacturing of a product, including wages of workers physically involved in production.
Balance Sheet
A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.
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