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.
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