Cully Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. What is the objective function?
A) MAX Z = $300 B + $100 M
B) MAX Z = $300 M + $150 B
C) MAX Z = $300 B + $150 M
D) MAX Z = $300 B + $500 M

Question

Quizplus · Accepted Answer

The objective function is to maximize the profit. Profit for each big shelf is $300 and for each medium shelf is $150. Therefore, the objective function will be the sum of the profits for each shelf multiplied by the number of shelves of that type:

Z = ($300 × B) + ($150 × M)

Option C represents the objective function accurately.

Cully Furniture Buys Two Products for Resale: Big Shelves (B)