Capsule Drugs manufactures two drugs. The drugs are produced by blending two chemicals. By weight, drug 1 must contain at least 75% chemical 1, and drug 2 must contain at least 45% chemical 1. Drug 1 sells for $10 per ounce, and drug 2 sells for $7 per ounce. Chemicals 1 and 2 can be produced by one of two production processes. Running process 1 for an hour requires 8 ounces of raw material and 3 hours of skilled labor, and it yields 4 ounces of each chemical. Running process 2 for an hour requires 6 ounces of raw material and 2 hours of skilled labor, and it yields 5 ounces of chemical 1 and 2 ounces of chemical 2. A total of 2000 hours of skilled labor and 6000 ounces of raw material are available. Determine how to maximize Capsule’s sales revenues.

BuyFind

Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659
BuyFind

Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659

Solutions

Chapter
Section
Chapter 4, Problem 92P
Textbook Problem

Capsule Drugs manufactures two drugs. The drugs are produced by blending two chemicals. By weight, drug 1 must contain at least 75% chemical 1, and drug 2 must contain at least 45% chemical 1. Drug 1 sells for $10 per ounce, and drug 2 sells for $7 per ounce. Chemicals 1 and 2 can be produced by one of two production processes. Running process 1 for an hour requires 8 ounces of raw material and 3 hours of skilled labor, and it yields 4 ounces of each chemical. Running process 2 for an hour requires 6 ounces of raw material and 2 hours of skilled labor, and it yields 5 ounces of chemical 1 and 2 ounces of chemical 2. A total of 2000 hours of skilled labor and 6000 ounces of raw material are available. Determine how to maximize Capsule’s sales revenues.

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Chapter 4 Solutions

Practical Management Science
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Suppose that Eli...Ch. 4 - AdminaStar processes Medicare claims. At the...Ch. 4 - All steel manufactured by Allied Steel must meet...Ch. 4 - During the next four quarters, Dorian Auto must...Ch. 4 - The Internal Revenue Service (IRS) has determined...Ch. 4 - You own a wheat warehouse with a capacity of...Ch. 4 - You can calculate the risk index of an investment...Ch. 4 - Based on Magoulas and Marinos-Kouris (1988). An...Ch. 4 - Capsule Drugs manufactures two drugs. The drugs...Ch. 4 - Molecular Products produces three chemicals: B, C,...Ch. 4 - Bexter Labs produces three products: A, B, and C....Ch. 4 - Mondo Motorcycles is determining its production...Ch. 4 - An automobile manufacturing company has a 500,000...Ch. 4 - Broker Sonya Wong is currently trying to maximize...Ch. 4 - Budget Auto produces inexpensive cars. Each car is...Ch. 4 - The ZapCon Company is considering investing in...Ch. 4 - You are a CFA (chartered financial analyst). An...Ch. 4 - Aluminaca produces 100-foot-long, 200-foot-long,...Ch. 4 - Each day, Eastinghouse produces capacitors during...Ch. 4 - During the next three months, a heating and...Ch. 4 - Gotham City National Bank is open Monday through...Ch. 4 - Based on Rothstein (1973). The Springfield City...Ch. 4 - Based on Charnes and Cooper (1955). Alex Cornby...Ch. 4 - City 1 produces 500 tons of waste per day, and...Ch. 4 - Based on Smith (1965). Silicon Valley Corporation...Ch. 4 - The Fresh Turkey Company produces two types of...Ch. 4 - The production line employees at Grummins Engine...Ch. 4 - Based on Lanzenauer et al. (1987). To process...Ch. 4 - Based on Robichek et al. (1965). The Korvair...Ch. 4 - Mackk Engine produces diesel trucks. New...Ch. 4 - Each hour from 10 A.M. to 7 P.M., Bank One...Ch. 4 - Owens-Wheat uses two production lines to produce...Ch. 4 - Rylon Corporation manufactures Brute cologne and...Ch. 4 - Sunco Oil has three different processes that can...Ch. 4 - Flexco produces six products in the following...Ch. 4 - Each week, Chemco can purchase unlimited...Ch. 4 - Bexter Labs produces three products: A, B, and C....Ch. 4 - Based on Franklin and Koenigsberg (1973). The city...Ch. 4 - Based on Carino and Lenoir (1988). Brady...Ch. 4 - Based on Dobson and Kalish (1988). Chandler...Ch. 4 - Based on Robichek et al. (1965). At the beginning...Ch. 4 - During each six-hour period of the day, the...Ch. 4 - Based on Glassey and Gupta (1978). A paper...Ch. 4 - Three bonds, as listed in the file P04_127.xlsx,...Ch. 4 - You have been assigned to develop a model that can...Ch. 4 - You have been assigned to develop a model that can...Ch. 4 - Keefer Paper produces recycled paper from paper...Ch. 4 - In this chapter, we give you the cost of producing...Ch. 4 - Discuss how the aggregate planning model could be...Ch. 4 - A large CPA firm currently has 100 junior staff...Ch. 4 - The employee scheduling model in this chapter was...Ch. 4 - Explain why it is problematic to include a...

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