Abante Communications manufactures portable radio systems that can be used for two-way communications. The company’s new product, which has a range of up to 25 miles, is particularly suitable for use in a variety of business and personal applications. The distribution channels for the new radio are: Marine Equipment Distributors, Business Equipment Distributors, National chain of retail stores, and Direct mail. Because of the differing distribution and promotional costs, the profitability of the product will vary with the distribution channel. In addition, the advertising cost and personal sales effort required will vary with the distribution channels. Marine Equipment Distributors, Business Equipment Distributors, National chain of retail stores, and Direct mail respectively provides P90, P84, P70, and P60 profit per unit sold. However, each distribution channel spends P10, P8, P9, and P15 of advertising cost per unit respectively. Lastly, personal sales effort per unit sold (hours) is 2, 3, 3, and 0 respectively. The firm set the advertising budget at P5,000 and a maximum of 1800 hours of Salesforce time that is available for allocation to the sales effort. Management also decided to produce exactly 600 units for the current production period. Finally, an ongoing contract with the national chain of retail stores requires that at least 150 units be distributed through this distribution channel. Abante Communications is now faced with the problem of establishing a strategy that will provide for the distribution of the radios in such a way that overall profit ability of the new radio production will be maximized. Which of the following can represent the constraint limit for advertising? A. 10A + 8B + 9C + 15D /= 5000 D. 2W + 3X + 3Y + Z /= 150 D. 70X + 9Y + 3Z >/= 150 5. Which of the following is NOT a constraint function for Abante Communications? * A.10A + 8B + 9C + 15 D = 5000 B. A + B + C + D = 600 C. Answer not given D. 2A + 3B + 3C </= 1800
Abante Communications manufactures portable radio systems that can be used for two-way communications. The company’s new product, which has a range of up to 25 miles, is particularly suitable for use in a variety of business and personal applications. The distribution channels for the new radio are: Marine Equipment Distributors, Business Equipment Distributors, National chain of retail stores, and Direct mail. Because of the differing distribution and promotional costs, the profitability of the product will vary with the distribution channel. In addition, the advertising cost and personal sales effort required will vary with the distribution channels. Marine Equipment Distributors, Business Equipment Distributors, National chain of retail stores, and Direct mail respectively provides P90, P84, P70, and P60 profit per unit sold. However, each distribution channel spends P10, P8, P9, and P15 of advertising cost per unit respectively. Lastly, personal sales effort per unit sold (hours) is 2, 3, 3, and 0 respectively. The firm set the advertising budget at P5,000 and a maximum of 1800 hours of Salesforce time that is available for allocation to the sales effort. Management also decided to produce exactly 600 units for the current production period. Finally, an ongoing contract with the national chain of retail stores requires that at least 150 units be distributed through this distribution channel. Abante Communications is now faced with the problem of establishing a strategy that will provide for the distribution of the radios in such a way that overall profit ability of the new radio production will be maximized.
- Which of the following can represent the constraint limit for advertising?
A. 10A + 8B + 9C + 15D </= 5000
B. Answer not given
C. 10A + 8B + 9C + 15D >/= 5000
D. 2W + 3X + 3Y + Z </= 600 - Which of the following can be the objective function for Abante Communications?
A. Maximize Z = 90M + 84B + 70R + 60D
B. Minimize Z = A + B + C + D
C. Minimize Z = 10A + 8B + 9C + 15D
D. Maximize Z = 2W + 3X + 3Y + Z
3. Which of the following is the non-negativity constraint for Abante Communications?
A. None of the answers are correct
B. A, B, C, D < 0
C. M, R, D, B = 0
D. W, X, Y, Z </= 0
E. All of the answers are correct
4.Which of the following can represent the constraint due to the specific number of units distributed by the National Chain of Retails Stores? *
A. Answer not given
B. A + B + C + D </= 150
C. R >/= 150
D. 70X + 9Y + 3Z >/= 150
5. Which of the following is NOT a constraint function for Abante Communications? *
A.10A + 8B + 9C + 15 D </= 5000
B. A + B + C + D = 600
C. Answer not given
D. 2A + 3B + 3C </= 1800
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