# 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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