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Book2 - Chemical 2 0.06 0.04 0.01 batch of NasaMist...

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New Age Pharmaceuticals NewAge Pharmaceuticals produces the drug NasaMist from four chemicals. Today, the company must Cost/lb of chemicals produce 1000 pounds of the drug. The three active Chemical 1 $8 ingredients in NasaMist are A, B, and C. By weight, at Chemical 2 $10 least 8% of NasaMist must consist of A, at least 4% of Chemical 3 $11 B, and at least 2% of C. The cost per pound of each Chemical 4 $14 chemical and the amount of each active ingredient in 1 pound of each chemical are given in the file Ingredient/lb of chemical P15_74.xlsx. It is necessary that at least 100 pounds of A B C chemical 2 be used. Chemical 1 0.03 0.02 0.01 a. Determine the cheapest way of producing today’s
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Unformatted text preview: Chemical 2 0.06 0.04 0.01 batch of NasaMist. Chemical 3 0.10 0.03 0.04 Chemical 4 0.12 0.09 0.04 Required percentages of ingredients A B C 8% 4% 2% Production plan Lbs used Required Chemical 1 Chemical 2 >= 100 Chemical 3 Chemical 4 Total >= 1000 Percentage constraints (expressed in lbs) A B C Actual >= >= >= Required Cost $0 Sensitivity of total cost to percent required of A $B$36 Increase 6% $9,933 7% $10,263 $329 8% $10,638 $375 9% $11,013 $375 10% $11,500 $488 11% $13,000 $1,500 12% Not feasible Each 1% increase incurs a larger cost. However, there is no feasible solution at all if the percent required is 12%....
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