A manufacturing firm has discontinued production of a certain unprofitable product line. Considerate excess production capacity was created as a result. Management is considering devoting this excess capacity to one or more of three products: X1, X2 and X3. Machine hours required per unit are Machine Type Product X1 X2 X3 Milling Machine 8 2 3 Lathe 4 3 0 Grinder 2 0 1 The available time in machine hours per week is Machine Hours per Week Milling Machines 800 Lathes 480 Grinders 320 The sales people estimate they can sell all the units of X1 and X2 that can be made. But the sales potential of X3 is 80 units per week. Unit profits for X1, X2 and X3 are $20, $6, $8 respectively. If we define the decision variables as X1,X2, X3 --- the production quantities of the three products, the object function is to maxmize . In addition to non-negative constraints, other constraints are

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?