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
Xi = the amount of product i produced
Yi = 1 if Xi > 0 and 0 if Xi = 0
What is the appropriate value for M1 in the linking constraint for product A?
A) 2
B) 3
C) 16
D) 12
Correct Answer:
Verified
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