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Katarina [22]
3 years ago
9

There are many unstated assumptions in the problem given above. Even if the mathematical solution is to make only one or two typ

es of​ bicycles, there may be demand for the​ type(s) not being​ made, which would create problems for the company. Discuss this and other difficulties that would arise in a real situation. Choose the correct answer below. A. The company may acquire more units of aluminum and​ steel, which would allow for producing more bicycles. A linear programming model cannot account for this. B. Due to higher production of certain types of​ bicycles, the company may incur higher costs for bicycle repairs. This would reduce the profit generated for certain levels of production. C. Producing more of one type of bicycle requires producing fewer of another type of bicycle. The linear programming model does not account for this. D. The company might need to lower the price of one type of bicycle to sell the predicted number of them. This would reduce the profit generated.
Business
1 answer:
Genrish500 [490]3 years ago
3 0

Answer:

The unstated assumptions in the problems given is that the company may require more units of aluminium and steel, which would allow for producing more bicycles.A linear programming model cannot account for this.

Explanation:

Linear programming model: this is an algebraic description of te objectives to be minimized and the constraints to be satisfied by the variables.

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Answer:

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we can determine what product is more profitable if we determine a contribution margin per molding equipment usage ratio:

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It is more profitable to produce sinks than tubs, but we can sell only 1,000 sinks per year, so even after we product the 1,000 sinks we will have spare molding equipment capacity which we can use to produce tubs.

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We can produce 410 tubs (= 2,050 molding hours / 5 hours per tub)

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Explanation:

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