National Metals Company (NMC) manufactures titanium shafts. Its equipment is capable of producing shafts in ten lengths, reflecting different settings on its machinery. These lengths are 32 cm to 50 cm in steps of 2 cm. Setting up the machinery to produce one of these lengths (which is done once a week) costs $250. As a result, NMC has decided to make only a selected number of lengths. When a customer requests a given length, NMC may supply it from stock if it happens to match one of the lengths in the production schedule. Otherwise, NMC trims a longer length to meet the order. The variable cost for producing the shafts is $20 per cm, and NMC receives revenue of $40 per cm. Trim waste can be sold to a recycler for $15 per cm.
The demand requirements for the coming week are tabulated as follows-all demand must be satisfied:

What is an optimal assortment of lengths for NMC to manufacture?

Transcribed Image Text:

Length (cm) 42 48 32 36 34 38 40 46 44 50 12 5 8 3 12 Demand 4 16