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United Aluminum Company of Cincinnati produces three grades (high, medium, and low) of aluminum at two mills. Each mill has a different production capacity (in
- United Aluminum Company of Cincinnati produces three grades (high, medium, and low) of aluminum at two mills. Each mill has a different production capacity (in tons per day) for each grade as follows:
Aluminum Grade
Mill
1
2
High
6
2
Medium
2
2
Low
4
10
Aluminum Grade | Mill | |
1 | 2 | |
High | 6 | 2 |
Medium | 2 | 2 |
Low | 4 | 10 |
The company has contracted with a manufacturing firm to supply at least 12 tons of high-grade aluminum, and 5 tons of low-grade aluminum. It costs United $6000 per day to operate mill 1 and $7000 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 minimum cost.
Formulate a linear programming model for this problem in "Standard Form".
- Solve the linear programming model formulated in problem 7 by using the computer and answer the following:
- Identify and explain the shadow prices for each of the aluminum grade contract requirements.
- Identify the sensitivity ranges for the objective function coefficients and the constraint quantity values.
- Would the solution values change if the contract requirements for high-grade aluminum were increased from 12 tons to 20 tons? If yes, what would the new solution values be?
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