Question
A mining company owns two mines, each of which produces three grades (high, medium, and low) of ore. The company has a contract to supply
A mining company owns two mines, each of which produces three grades (high, medium, and low) of ore. The company has a contract to supply a smelting company with at least 12 tons of high-grade ore, at least 8 tons of medium-grade ore, and at least 24 tons of low-grade ore. Each hour of operation, mine 1 produces 6 tons of high-grade ore, 2 tons of medium-grade ore, and 4 tons of low-grade ore. Each hour of operation, mine 2 produces 2 tons of high-grade ore, 2 tons of medium-grade ore, and 12 tons of low-grade ore. It costs $200 per hour to operate mine 1 and $160 per hour to operate mine 2. How many hours should each mine be operated so as to meet the contractual obligations at the lowest total operating cost?
Use this sensitivity report to answer the questions below.
If the low-grade ore requirement was raised to 35 tons: What minimum Cost could be realized? Would the optimal solution change?
Question 12 options:
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The minimum cost will remain $680 and the optimal solution will not change
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The minimum cost will remain $680 and the optimal solution will change
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Not enough information provided. Thus, we should create a new model and rerun solver to answer this question
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None of the above
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