Different kinds of decision variables


Problem:

The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain. Westfall has four different machines that can produce this kind of hose. Because these machines are from different manufacturers and use differing technologies, their specifications are not the same.

Machine    Fixed Cost 2 Set Up Production Run    Variable Cost p/h Capacity

1    750    1.25    6000
2    500    1.50    7500
3    1000  1.00    4000
4    300    2.00    5000

a.  This problem requires two different kinds of decision variables. Clearly define each kind.

b. The company wants to minimize total cost. Give the objective function.

c. Give the constraints for the problem.

d. Write a constraint to ensure that if machine 4 is used, machine 1 cannot be.

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Accounting Basics: Different kinds of decision variables
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