Simplon Manufacturing Must Decide on the Processes to Use to Produce

question 46

Essay

Simplon Manufacturing must decide on the processes to use to produce 1650 units.If machine 1 is used,its production will be between 300 and 1500 units.Machine 2 and/or machine 3 can be used only if machine 1's production is at least 1000 units.Machine 4 can be used with no restrictions.
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$$\begin{array} { c c c c c } \text { Machine } & \begin{array} { c } \text { Fixed } \\\text { cost }\end{array} & \begin{array} { c } \text { Variable } \\\text { cost }\end{array} & \begin{array} { c } \text { Minimum } \\\text { Production }\end{array} & \begin{array} { c } \text { Maximum } \\\text { Production }\end{array} \\\hline 1 & 500 & 2.00 & 300 & 1500 \\2 & 800 & 0.50 & 500 & 1200 \\3 & 200 & 3.00 & 100 & 800 \\4 & 50 & 5.00 & \text { any } & \text { any }\end{array}$$ (HINT: Use an additional 0 - 1 variable to indicate when machines 2 and 3 can be used. )

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