Capsule Drugs manufactures two drugs. The drugs are produced by blending two chemicals. By weight, drug 1

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Capsule Drugs manufactures two drugs. The drugs are produced by blending two chemicals. By weight, drug 1 must contain at least 65% chemical 1, and drug 2 must contain at least 55% chemical 1. Drug 1 sells for $6 per ounce, and drug 2 sells for $4 per ounce. Chemicals 1 and 2 can be produced by one of two production processes. Running process 1 for an hour requires 7 ounces of raw material and 2 hours of skilled labor, and it yields 3 ounces of each chemical. Running process 2 for an hour requires 5 ounces of raw material and 3 hours of skilled labor, and it yields 3 ounces of chemical 1 and 1 ounce of chemical 2. A total of 3000 hours of skilled labor and 5000 ounces of raw material are available. Determine how to maximize Capsule’s sales revenues.

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Practical Management Science

ISBN: 1497

5th Edition

Authors: Wayne L. Winston, Christian Albright

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