Question
a firm plans to purchase at least 200 quintals of scarp containing high-quality metal X and low-quality metal Y. It decides that the scrap to
a firm plans to purchase at least 200 quintals of scarp containing high-quality metal X and low-quality metal Y. It decides that the scrap to be purchased must contain at least 100 quintals of X metal and not more than 35 quintals of Y metal. The firm can purchase the scrap from two suppliers (A and B) in unlimited quantities. The percentage of X and Y metals in terms of weight in the scarp supplied by A and B is given below.
Metals supplier A supplier B
X 25% 75%
Y 10% 20%
The price of A’s scrap is birr 200 per quintal and that of B is birr 400 per quintal. The firm wants to determine the quantities that it should buy from the two suppliers so that total cost is minimized.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To solve this problem we need to set up and solve a linear programming LP model The goal is to minimize the cost of purchasing scrap while meeting the ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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