A pharmaceutical company manufactures two drugs at Los Angeles and Indianapolis. The cost of…

A pharmaceutical company manufactures two drugs at Los
Angeles and Indianapolis. The cost of manufacturing a pound of each drug
depends on the location, as indicated in the file P03_41.xlsx. The machine time
(in hours) required to produce a pound of each drug at each city is also shown
in this table. The company must produce at least 1000 pounds per week of drug 1
and at least 2000 pounds per week of drug 2. It has 500 hours per week of
machine time at Indianapolis and 400 hours per week at Los Angeles.

a. Determine how the company can minimize the cost of
producing the required drugs. 126
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A pharmaceutical company manufactures two drugs at Los
Angeles and Indianapolis. The cost of manufacturing a pound of each drug
depends on the location, as indicated in the file P03_41.xlsx. The machine time
(in hours) required to produce a pound of each drug at each city is also shown
in this table. The company must produce at least 1000 pounds per week of drug 1
and at least 2000 pounds per week of drug 2. It has 500 hours per week of
machine time at Indianapolis and 400 hours per week at Los Angeles.

a. Determine how the company can minimize the cost of
producing the required drugs. 126 Chapter 3 Introduction to Optimization
Modeling

b. Use SolverTable to determine how much the company would
be willing to pay to purchase a combination of A extra hours of machine time at
Indianapolis and B extra hours of machine time at Los Angeles, where A and B
can be any positive multiples of 10 up to 50.

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