Question: Complete the following problem. Consider the following example. Masters chips, uses 2 types of packaging material. It uses 150,000 plastic bags per year. Each plastic




Complete the following problem. Consider the following example. Masters chips, uses 2 types of packaging material. It uses 150,000 plastic bags per year. Each plastic bag costs $0.5. Plastic bags are produced in lots, each lot contains 140 plastic bags. The holding cost of one plastic bag equals 2% of the total lot cost, whereas the setup cost equals to 30% of it. Each plastic bag occupies 0.05 min storage. Besides, it uses 60,000 boxes per year. Each box order costs $1.5. The holding cost of one box equals 20% of the cost per order. Each box occupies 0.25 min storage. Its total available storage space is 100m2. The order quantity Y(plastic bags) is * 2211.72 units 5714.72 units 2,121.32 units 2645.72 units None of the answers. * The order quantity Y2(boxes) 574.72 units O None of the answers. 363.13 units 613.83 units O 774.60 units {(ai yi) equals 299.72 164.78 292.27 173.81 None of the answers. 7 After applying the constraint {(ai yi) SA, and taking into account that A=100 m2, we deduce that and O None of the answers. the constraint is violated; Y(1) & Y(2) are optimal. the constraint is satisfied; Y(1) & Y(2) are optimal. the constraint is satisfied; Y(1) & Y(2) are not optimal. the constraint is violated & binding; must be accounted for Total Cost per unit equals TCU (Y1*) + TCU (Y2*) = $2,601.11 O TCU (Y1*) + TCU (Y2*) = $3,202.23 = TCU (Y1*) + TCU (Y2*) = $1,601.11 TCU (Y1*) + TCU (Y2*) = $5,601.11 = None of the answers
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