Question
The RMC Corporation blends three raw materials to produce two products: a fuel additive and a solvent base. The profit contributions are $40 per ton
The RMC Corporation blends three raw materials to produce two products: a fuel additive and a solvent base. The profit contributions are $40 per ton for the fuel additive and $30 per ton for the solvent base. Each ton of fuel additive is a mixture of 25 ton of material 1 and 35 ton of material 3. A ton of solvent base is a mixture of 12 ton of material 1, 15 ton of material 2, and 3/10 ton of material 3. RMCs production is constrained by limited availability of the three raw materials. For the current production period, RMC has the following quantities of each raw material: material 1, 20 tons; material 2, 5 tons; material 3, 21 tons. Management wants to achieve the following:
Priority Level 1
- Goal 1: Produce at least 30 tons of fuel additive.
- Goal 2: Produce at least 15 tons of solvent base.
Priority Level 2
- Goal 3: Would like to achieve a satisfactory total profit level of $1,500
Priority Level 3
- Goal 4: Prefers not to use more than 20 tons of material 1
Priority Level 4
- Goal 5: Limit material 3 usage to 21 tons
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