A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model: Max 20x1 + 65x2 – 100y1 – 200y2 s.t. 5x1 + 10x2 ≤ 100 {Constraint 1} 20x1 + 50x2 ≤ 250 {Constraint 2} 1x1 + 1.5x2 ≤ 10 {Constraint 3} My1 ≥ x1 {Constraint 4} My2 ≥ x2 {Constraint 5} yi={1, if product j is produced ; 0, otherwise} Which of the following would be a reasonable value for the variable "M"? A. 100 B. 10 C. 1 D. 0.1 E. 0.01
A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model:
Max 20x1 + 65x2 – 100y1 – 200y2
s.t. 5x1 + 10x2 ≤ 100 {Constraint 1}
20x1 + 50x2 ≤ 250 {Constraint 2}
1x1 + 1.5x2 ≤ 10 {Constraint 3}
My1 ≥ x1 {Constraint 4}
My2 ≥ x2 {Constraint 5}
yi={1, if product j is produced ; 0, otherwise}
Which of the following would be a reasonable value for the variable "M"?
A. 100
B. 10
C. 1
D. 0.1
E. 0.01
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