Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

undefined Question 1 United Aluminum Company produces three grades (high, medium, and low) of alumnimum at two mills. Each mill has a different production capacity

image text in transcribedundefined

Question 1 United Aluminum Company produces three grades (high, medium, and low) of alumnimum at two mills. Each mill has a different production capacity (in tons per day) for each grade, as follows: Mill 1 Mill 2 Aluminum grade High Medium Low 6 2 2 2 4 10 The company has contracted with a manufacturing firm to supply at least 12 tons of high-grade aluminum, 8 tons of medium-grade aluminum, and 5 tons of low-grade aluminum. It costs United $6,000 per day to operate mill 1 and $7,000 per day to operate mill 2. The company wants to know the number of days to operate each mill in order to meet the contract at the minimum cost. a. Formulate the linear programming model for this problem and solve graphically. Confirm your solution using Solver. b. How much extra (i.e. surplus) high-, medium-, and low-grade aluminum does the company produce at the optimal solution? c. What would be the effect on the optimal solution if the cost of operating mill 1 increased from $6,000 to $7,500 per day? d. What would be the effect on the optimal solution obtained in part c, if the company could supply only 10 tons of high-grade aluminum? e. In the original model (the one you formulated in part a): what is the shadow price for each of the three aluminum grades? f. In the original model: what is the sensitivity range for the objective function coefficients

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

Public Sector Accounting Auditing And Control In South Eastern Europe

Authors: Vesna Vašiček, Gorana Roje

1st Edition

303003352X, 978-3030033521

More Books

Students also viewed these Accounting questions