Question 9, 10, and 11 are related to a fixed charge problem, in which a fixed charge of $780 is associated with product 1. The related integral variable X1and binary variable Y1are defined as follows:
X1= number of units of product 1 to be produced, an integer.
Y1= 1 if X1>=1, and
Y1= 0 if X1=0.
9. What does the expression “780Y1” mean? (select one)
a. The expense of the $780 fixed charge in any case.
b. The $780 fixed charge is spent if Y1=1, and it is not spent if Y1=0.
c. It is the total cost of producing project 1, including both fixed and variable costs.
10. Write a constraint to represent: “If X1=0 then Y1=0, and if X1>0 then Y1can be either 0 or 1”.
11. Write a constraint to represent: “X1>=1 then Y1=1, and if X1=0 then Y1can be either 0 or 1”.
ANSWER:
9).
Option B is correct.
780Y1 = 780*1 = 780 when (Y1= 1) when it is produced, else 780*0 = 0 (Y1=0) when it is not produced.
10).
To represent the given condition: When there is no production the Variable and the fixed costs are 0.
So, when no production is there the production then Y1 = 0 (Binary) and so the variable cost mulitplier is also 0, X1=0
11).
To represent the given condition: When there is production the Variable and the fixed costs are positive (Non zero).
So, when production is there the production then Y1 = 1 (Binary) and so the variable cost mulitplier is also positive, X1>=1
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