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Questions 1-3 are in reference to the following scenario: LMD manufacturing limited has a contract to produce 8,000 store-brand DVD players for a large retailer.

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Questions 1-3 are in reference to the following scenario: LMD manufacturing limited has a contract to produce 8,000 store-brand DVD players for a large retailer. LMD has three different factories that can produce the required product. Because the factories use differing processes/technologies, etc., their specifications are not the same. The specifications, i.e. capacities along with associated fixed and variable production costs, for each factory are listed below. Also, given that factories 1 and 2 are located in the same geographic region, LMD wants to use a maximum of one of these two factories for the DVD production. Fixed Cost to Set-Up a Production Run Variable Cost Per DVD Player 55 Plant Capacity 5000 Factory 1 7500 5000 9000 6500 60 2 4000 45 3 We have defined the following decision variables for the problem: X- #DVD's to produce in factory 1 X2-#DVD's to produce in factory 2 X-#DVD's to produce in factory 3 Y-1 if we set-up production in factory 1, 0 if we don't (binary or 0,1, variable) Y2 1 if we set-up production in factory 2, 0 if we don't (binary or 0,1, variable) Y-1 if we set-up production in factory 3, 0 if we don't (binary or 0,1, variable) Let 3. The constraint requirement that LMD wants to use a maximum of one of Factories 1 and 2 for the DVD production may be written as: a. Yi- Y20 b. YI- Y2I Y+Y22 d. Yi+Y21 c

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