Deluxe Chemicals produces two types of photo developing chemicalsD78 and R45. The cost to produce D78 is

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Deluxe Chemicals produces two types of photo developing chemicals—D78 and R45. The cost to produce D78 is $2, and for R45, it is $1. Based on next month’s forecasts of demand for these chemicals, Deluxe Chemicals Management has decided to produce at least 40 gallons of D78 and 30 gallons of R45. Production of both these chemicals requires the use of a highly perishable raw material. The company has 120 pounds of this raw material in stock, which needs to be used within the next 10 days to avoid spoilage. Hence, Deluxe Chemicals has decided to produce both the products D78 and R45 within the next 10 days and plans to use all of the 120 pounds of the perishable raw material. Each gallon of D78 requires 2 pounds of this raw material, and R45 requires 1 pound. Formulate this problem as a linear programming model with a cost minimization objective, and solve using the graphical method.

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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