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Friendly Waste Co . runs three different factories and is required by law to safely dispose of chemicals once a month. Waste from three different

Friendly Waste Co. runs three different factories and is required by law to safely
dispose of chemicals once a month. Waste from three different factories can be processed
to reduce the amount of two different types of pollutants. State law requires that Friendly
Waste Co.s total reduction in the amount of pollutant A is at least 30 tons and pollutant
B is at least 40 tons across its three factories. Ultimately, Friendly Waste Co. would like to
minimize the processing cost associated with reducing the two types of pollutants. Because
some factories have better equipment than others, each factory has a different process for
reducing each Pollutant. This information is summarized below. Using the information in the
following table:
Factory Waste 1 Factory Waste 2 Factory Waste 3
Reduction in
pollutant A per ton
of processed waste
0.100.200.40
Reduction in
pollutant B per ton
of processed waste
0.450.250.30
Processing cost per
ton of waste
$15 $10 $20
Table 1: Pollutant Reduction and Processing Cost
Formulate the model algebraically. This does not need to be in standard LP form.
Solve the problem using Excel and generate the sensitivity report.
Interpret your answer with respect to the decision variables and the optimal objective
value. How much does it cost to process Factory Waste 1? How much does it cost to
process Factory Waste 2? How much does it cost to process Waste 3?
A new local environmental regulation causes the processing cost for each factory waste
to increase by $2. Would the optimal solution change in terms of the amount of waste?
Why?
Using the problems original values, suppose a new government regulation required a
reduction of Pollutant A to be 31%. How would that affect the problem?
Using the problems original values, suppose a new government regulation required a
reduction of Pollutant A to be 34%. How would that affect the problem?

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