Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. A chemical company has been given a contract to supply its product to an oil refinery for a 3-month period. The company shall

image text in transcribed

3. A chemical company has been given a contract to supply its product to an oil refinery for a 3-month period. The company shall supply 50 tons of its product at the end of the first month, 50 ton at the end of the second month, and 50 ton at the end of the third month. The cost ($) of producing the product for any month is (x + 1000) where x is ton of product. In any month i = {1, 2, 3}, the chemical company can produce more quantity of product and can carry them into a subsequent month by holding the product in an inventory. However, it costs $20 for each ton of product to hold in inventory. The inventory for the product in the first month is initially zero. Formulate an NLP (non-linear programming) problem with constraints and determine the optimum quantity of product to be produced by the chemical company in each of the three months that will minimize the total cost of production.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Methods For Business

Authors: Donald Waters

5th Edition

273739476, 978-0273739470

More Books

Students also viewed these General Management questions