Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A food producer has two processing plants, P1 and P2, in New South Wales. The producer operates 5 days a week. The cost of running

A food producer has two processing plants, P1 and P2, in New South Wales. The producer operates 5 days a week. The cost of running plant P1 is $3000 per day. The cost of running plant P2 is $2000 per day. After processing, food is graded into three grades: Grade I, Grade II and Grade III. The producer has contracted to provide each week the following quantities to the bulk buyer.

Grade I: 200kg

Grade II: 200kg

Grade III: 300kg

Each day, plant P1 processes 100kg of Grade 1, 160kg of Grade II and 100kg of Grade III food. The corresponding quantities for plant P2 are 100kg, 50kg and 300kg, respectively. The objective of the producer is to fulfil the contract with a minimum cost.

Use the information given above and set up the linear programming (LP) problem.

Using the linear programming problem, you have set up, answer the following questions:

Calculate and plot all the constraints and clearly shade the feasible region. Clearly mark and label all the constraints and corner point solutions on the graph. Show all the workings and calculations.

Calculate the cost minimizing number of days for which each plant should be operated per week to fulfil the contract? (fractional days allowed).

What is the minimum cost the food producer incurs?

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_2

Step: 3

blur-text-image_3

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

Technical Change, Relative Prices, And Environmental Resource Evaluation

Authors: V Kerry Smith

1st Edition

1317358570, 9781317358572

More Books

Students also viewed these Economics questions