The operations manager of a mail order house purchases double (D) and twin (T) beds for resale. Each double bed costs $500 and requires 100 cubic feet of storage space. Each twin bed costs $300 and requires 90 cubic feet of storage space. The manager has $75,000 to invest in beds this week, and her warehouse has 18,000 cubic feet available for storage. Profit for each double bed is $300 and for each twin bed is $150. The manager's goal is to maximize profits.
What is the objective function?
A) P = 150D + 300T
B) P = 500D + 300T
C) P = 300D + 500T
D) P = 300D + 150T
E) P = 100D + 90T

Question

Quizplus · Accepted Answer

The objective function represents the total profit, which is calculated by multiplying the profit per unit by the number of units sold. For double beds, the profit is $300 each, and for twin beds, it's $150 each. Therefore, the correct objective function is P = 300D + 150T.

The Operations Manager of a Mail Order House Purchases Double