Question
A company will be able to obtain a quantity discount on component parts for its three products, X1, X2 and X3 if it produces beyond
A company will be able to obtain a quantity discount on component parts for its three products, X1, X2 and X3 if it produces beyond certain limits. To get the X1 discount it must produce more than 50 X1's. It must produce more than 60 X2's for the X2 discount and 70 X3's for the X3 discount. Which of the following pair of constraints enforces the quantity discount relationship on X3? Note that we use Y3, a binary variable with 1 denotes yes. This quantity discount is stepwise in the sense that the quantity below or equal to the threshold (certain limit) does not receive the discount while only that above the threshold receives the discount. X31denotes the quantity of X3 without discount, and X32denotes the quantity with discount. M3is a big enough number.
a) 3233, 31703 b) 3133,32703 c) 3133,32703 d) 3233,31703
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