The Westfall Company Has a Contract to Produce 10,000 Garden

question 36

Essay

The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain.Westfall has four different machines that can produce this kind of hose.Because these machines are from different manufacturers and use differing technologies,their specifications are not the same.
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$$\begin{array} { c c c c } \text { Machine } & \begin{array} { c } \text { Fixed Cost to Set } \\\text { Up Production Run }\end{array} & \begin{array} { c } \text { Variable Cost } \\\text { Per Hose }\end{array} & \text { Capacity } \\\hline 1 & 750 & 1.25 & 6000 \\2 & 500 & 1.50 & 7500 \\3 & 1000 & 1.00 & 4000 \\4 & 300 & 2.00 & 5000\end{array}$$
a.This problem requires two different kinds of decision variables.Clearly define each kind.
b.The company wants to minimize total cost.Give the objective function.
c.Give the constraints for the problem.
d.Write a constraint to ensure that if machine 4 is used,machine 1 cannot be.

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Definitions:

Concentric Market

A Concentric Market strategy involves targeting new markets with existing products by expanding outward from the core or current market, often leveraging similarities or adjacent customer needs.

Generic Competition

Competition between brands or products that fulfill the same needs without distinguishing features, often seen in commoditized markets.

Product Category

Classification of goods and services into groups that meet similar consumer needs or are targeted towards similar markets.

Core

The essential, central, or most important part of something, often referring to the main strengths or strategic advantages of a business.