Question: The ABC company is developing its weekly production plan. The company produces two products, A and B, which are processed in two departments. Setting up

The ABC company is developing its weekly production plan. The company produces two products, A and B, which are processed in two departments. Setting up each batch of A requires $60 of labor while setting up a batch of B costs $80. Each unit of A generates agross profit of $17 while a unit of B earns a gross profit of $21. The company can sell all the units it produces. The data for the problem is summarized below.

Hours required by

Operation

A

B

Hours Available

Cutting

3

4

48

Welding

2

1

36

The decision variables are defined as:

Xi= the amount of product i (1= A, 2= B) produced

Yi= 1 if product i is produced, and 0 if it is not

  1. Which of the following constraints is valid?
    1. X1-16Y1<= 0
    2. X1-Y1=0
    3. X1-18Y1>=0
    4. 3X1+4X2=48
  2. What is the objective function?

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