A company is planning next month's production.It has to pay a setup cost to produce a batch of X₄'s so if it does produce a batch it wants to produce at least 100 units.Which of the following pairs of constraints show the relationships)between the setup variable Y₄and the production quantity variable X₄? A)X₄≤ M₄Y₄,X₄≥ 100 B)X₄≤ M₄Y₄,X₄= 100 Y₄ C)X₄≤ M₄Y₄,X₄≥ 100 Y₄ D)X₄≤ M₄Y₄,X₄≤ 100 Y₄

Question

Quizplus · Accepted Answer

The constraint X₄≤ M₄Y₄ indicates that the production quantity is less than or equal to the maximum number of units that can be produced with one setup. The constraint X₄≥ 100 indicates that the company wants to produce at least 100 units. Therefore, the best choice is C, which includes both these constraints. Choice A and D are incorrect because they do not include the minimum production quantity constraint. Choice B is incorrect because it assumes that the production quantity is equal to 100 units, which may not necessarily be the case.

A Company Is Planning Next Month's Production