A Company That Makes the Rocket Widget Has One Machine

Multiple Choice

A company that makes the rocket widget has one machine capable of producing this unique item. The machine requires an attendant, who works 40 hours a week for $12 per hour and has made himself available for a maximum of 8 hours of overtime. It costs $20 per hour to run the machine and it is capable of producing 10,000 rocket widgets per hour. The widgets sell for $10 per hundred and cost $1 per hundred in materials. If the production manager wishes to develop a sales and operations plans using an optimization model, which of the following statements is valid?

A) The objective function should limit overtime to less than 8 hours per week.
B) The objective function should maximize the amount of rocket widgets produced.
C) The objective function should be to minimize costs.
D) None of these statements will help plan production using optimization modeling.