30%

The new pharmaceutical product that the company wishes to introduce, Orchid Relief, uses two new ingredients. At this stage, Eli Orchid can procure limited amounts of each ingredient. The company has 4500 pounds of ingredient 1 and 3600 pounds of ingredient 2 available for this week. Eli Orchid can manufacture the new product using any of its three existing processes that have different capabilities. The production with each of the processes is done in batches (a batch typically represents one full run of a machine from when it starts a task until it finishes it. Therefore, a batch is an integer). Each batch of production by each of the processes uses different amounts of ingredients 1 and 2, and results in different number of units of Orchid Relief produced.

Process 1 $14,000 180 60 120 Available 4500 3600 Cost of production per batch Ingredient 1 required per batch (pounds) Ingredient 2 required per batch (pounds) Orchid Relief ylelded per batch (units) Process 2 Process 3 Used $30,000 $11,000 Supply of ingredient 1 (pounds) 1920- 120 540 Supply of Ingredient 2 (pounds) 3300