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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 (minimum) requirements increased by 2 tons for each of high-grade, medium-grade, and low-grade ore: What minimum Cost could be realized? Would the optimal solution change? The sum of percentages 100%, the shadow prices are not operative. Not enough information provided. Thus, we should create a new model and rerun solver to answer this question. The sum of percentages 100%, the shadow prices are operative. The minimum cost would be $840. The optimal solution will not change. The sum of percentages 100%, the shadow prices are operative. The minimum cost would be $840. The optimal solution would change. None of the above
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