# perfume - Processing an ounce of Regular Chanelle requires...

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Making Perfume Page 66 (30) Rylon Corporation manufactures Brute and Chanelle perfumes. Raw material costs \$3 per pound. Processing a pound of raw material takes one hour of laboratory time, and yields 3 ounces of Regular Brute and 4 ounces of Regular Chanelle perfume. Regular Brute can be sold for \$7/ounce and Regular Chanelle can be sold for \$6/ounce. Rylon has the option of further processing Regular Brute perfume to produce Luxury Brute perfume, selling for \$18/ounce. Each ounce of Regular Brute processed requires additional 3 hours of laboratory time and yields one ounce of Luxury Brute at a cost of \$4. They can also process Regular Chanelle into Luxury Chanelle.

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Unformatted text preview: Processing an ounce of Regular Chanelle requires 2 additional hours of lab time and yields one ounce of Luxury Chanelle, again at a cost \$4. Luxury Chanelle sells for \$14/ounce. Rylon has 4000 pounds of raw material on hand, and 6000 hours of lab time available. How can they maximize their profit? x 1 = Pounds of raw materials to process x 2 = Ounces of luxury brute to make x 3 = Ounces of luxury chanelle to make Max: 7(3x 1- x 2 ) + 6(4 x 1- x 3 ) +18 x 2 +14 x 3 –(3 x 1 +4 x 2 +4 x 3 ) S.T. x 1 ≤4000 x 1 +3x 2 +2x 3 ≤6000 3x 1- x 2 ≥0 4 x 1- x 3 ≥0 x 1 , x 2 , x 3 ≥0...
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## This note was uploaded on 09/28/2011 for the course MANAGEMENT 386 taught by Professor Ben-israel during the Spring '11 term at Rutgers.

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perfume - Processing an ounce of Regular Chanelle requires...

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