IEOR162_hw03 - IEOR 162 Spring 2012 Homework 03 1(Modied...

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IEOR 162, Spring 2012 Homework 03 1. (Modified from Problem 3.8.11; 10 points) Eli Daisy produces the drug Rozac from four chemicals. Today they must produce EXACTLY 1,000 lb of the drug. The three active ingredients in Rozac are A, B, and C. By weight, at least 8% of Rozac must consist of A, at least 4% of B, and at least 2% of C. The cost per pound of each chemical and the amount of each active ingredient in 1 lb of each chemical are given in the following table. It is necessary that at least 100 lb of chemical 2 are used. Formulate an LP whose solution would determines the cheapest way of producing today’s batch of Rozac. Chemical Cost ($ per lb) A B C 1 8 0.03 0.02 0.01 2 10 0.06 0.04 0.01 3 11 0.10 0.03 0.04 4 14 0.12 0.09 0.04 2. (Modified from Problem 3.9.5; 10 points) A company produces A, B, and C and can sell these products in unlimited quantities at the following unit prices: A, $10; B, $56; C, $100. Producing a unit of A requires 1 hour of labor; a unit of B, 2 hours of labor plus 2 units of A; and a unit of C, 3 hours of labor plus 1 unit of B. Any A that is used to produce B cannot be sold. Similarly, any B that is used
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