Question: A paper recycling company converts newspaper, mixed paper, white office paper, and cardboard into pulp for newsprint, packaging paper, and print stock quality paper. The

A paper recycling company converts newspaper, mixed paper, white office paper, and cardboard into pulp for newsprint, packaging paper, and print stock quality paper. The following table summarizes the yield for each kind of pulp recovered from each ton of recycled material.


A paper recycling company converts newspaper, mixed


For instance, a ton of newspaper can be recycled using a technique that yields 0.85 tons of newsprint pulp. Alternatively, a ton of newspaper can be recycled using a technique that yields 0.80 tons of packaging paper. Similarly, a ton of cardboard can be recycled to yield 0.80 tons of newsprint or 0.70 tons of packaging paper pulp. Note that newspaper and cardboard cannot be converted to print stock pulp using the techniques available to the recycler. The cost of processing each ton of raw material into the various types of pulp is summarized in the following table, along with the amount of each of the four raw materials that can be purchased and their costs.


A paper recycling company converts newspaper, mixed


The recycler wants to determine the least costly way of producing 500 tons of newsprint pulp, 600 tons of packaging paper pulp, and 300 tons of print stock quality pulp.
a. Create a spreadsheet model for this problem and solve it.
b. What is the optimalsolution?

Recycling Yield Packaging 80% 80% Print Stock Newsprint 85% 90% Newspaper Mixed Paper White Office Paper Cardboard 70% 80% 90% 80% 85% 70% Processing Costs per Ton Purchase Cost Tons Newsprint Packaging Print Stock PerTon Available $6.50 $9.75 Newspaper Mixed Paper White Office Paper 4.75 Cardboard $11.00 $12.25 $7.75 $8.50 $15 $16 $19 $17 600 500 300 400 $9.50 $8.50 $7.50

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