Each process 2 run yields 1 ounce of product B and 0.8 ounce of liquid waste. Process

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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.

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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