Ang company that produces pleasure boats has decided to expand one of its lines. The company is considering three Location alternatives. The cost structure for each location is given as shown in the table. Location Fixed Cost/yr variable cost/unit L1 6,750 4.2 L2 12,892 2.4 L3 8,632 3.3 a) The range of output for location alternative 1 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) b) The range of output for location alternative 2 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) c) The range of output for location alternative 3 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) d) The alternative would yield the lowest total cost for an expected annual volume of 4505 boats is location ( ) (Ex. type in as L1, L2, or L3)

Ang company that produces pleasure boats has decided to expand one of its lines. The company is considering three Location alternatives. The cost structure for each location is given as shown in the table. Location Fixed Cost/yr variable cost/unit L1 6,750 4.2 L2 12,892 2.4 L3 8,632 3.3 a) The range of output for location alternative 1 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) b) The range of output for location alternative 2 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) c) The range of output for location alternative 3 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range) d) The alternative would yield the lowest total cost for an expected annual volume of 4505 boats is location ( ) (Ex. type in as L1, L2, or L3)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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Ang company that produces pleasure boats has decided to expand one of its lines. The company is considering three Location alternatives. The cost structure for each location is given as shown in the table. Location Fixed Cost/yr variable cost/unit L1 11,875 1.65 L2 7,548 2.81 L3 4,215 5.21 a) The range of output for location alternative 1 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range)b) The range of output for location alternative 2 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range)c) The range of output for location alternative 3 that would yield the lowest total cost is ( ) (Ex. In whole number, use Q, <, <=, >, >= to specify the range)d) The alternative would yield the lowest total cost for an expected annual volume of 3523 boats is location (…
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