A company will be able to obtain a quantity discount on component parts for its three products,X₁,X₂and X₃if it produces beyond certain limits.To get the X₁discount it must produce more than 50 X₁'s.It must produce more than 60 X₂'s for the X₂discount and 70 X₃'s for the X₃discount.Which of the following pair of constraints enforces the quantity discount relationship on X₃? A)X₃₁≤ M₃Y₃,X₃₂≥ 50Y₃ B)X₃₁≤ M₃Y₃,X₃₁≥ 50 C)X₃₂≥ 1/50)X₃₁,X₃₁≤ 50 D)X₃₂≤ M₃Y₃,X₃₁≥ 50Y₃

Question

Quizplus · Accepted Answer

This constraint enforces that X₃ discount is applicable only if the company produces more than 70 X₃'s. It also ensures that the company cannot produce more than the available quantity discount limit, M₃, for X₃. Therefore, D is the correct choice. A and B are incorrect because they do not include the minimum production limit of 70 X₃'s. C is incorrect because it does not specify the quantity discount limit, M₃, for X₃.

A Company Will Be Able to Obtain a Quantity Discount