Each process 2 run yields 1 ounce of product B and 0.8 ounce of liquid waste. Process
Question:
Each process 2 run yields 1 ounce of product B and 0.8 ounce of liquid waste. Process 2 incurs $8 in costs. Chemco can dispose of liquid waste in the Port Charles River or use the waste to produce product C or product D. Government regulations limit the amount of waste Chemco is allowed to dump into the river to 1000 ounces per week.
Each ounce of product C costs $4 to produce and sells for $11. Producing 1 ounce of product C requires 1 hour of processing time, 2 ounces of input 1, and 0.8 ounce of liquid waste. Each ounce of product D costs $5 to produce and sells for $7. Producing 1 ounce of product D requires 1 hour of processing time, 2 ounces of input 2, and 1.2 ounces of liquid waste. At most, 5000 ounces of product A and 5000 ounces of product B can be sold each week, but weekly demand for products C and D is unlimited.
Product A sells for $18 per ounce and product B sells for $24 per ounce. Each week, 6000 hours of processing time are available. Determine how Chemco can maximize its weekly profit.
Step by Step Answer:
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright