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Unformatted text preview: ORIE 3300/5300 Fall 2011 Prof. Bland Recitation Exercise 7 Due at the conclusion of your recitation section. 1. Electrolytic Smelting, Inc. (ESI), which produces aluminum, is planning pro- duction for the first quarter of 2012. There are three products: (1) low-grade aluminum (98% pure); (2) smelter-grade aluminum (99.7% pure); and (3) super- pure aluminum (99.99% pure). Among the resources consumed in the elec- trolytic smelting process used to produce products 1, 2, and 3, the ones in scarce supply are: aluminum oxide; cryolite; electric power; and labor. The availabilities of these resources for the first quarter production run are as fol- lows: Scarce Resource Availability Aluminum Oxide 1,500 tons Cryolite 3,000 tons Electric Power 14,000 megawatt-hours (MWh) Labor 10,500 hours The ESI management team’s objective for first quarter production is to max- imize revenue, in order to try to meet revenue targets for the 2012 year. For each of products 1, 2, and 3, the revenue per ton of aluminum produced and...
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This note was uploaded on 10/31/2011 for the course OR&IE 3300 at Cornell.