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QUESTION

Bill and Bro's chemical ltd. must produce 10,000 kgs. of a special mixture for a customer. The mix consists of ingredients A, B and C.

Bill and Bro's chemical ltd. must produce 10,000 kgs. of a special mixture for a customer. The mix consists of ingredients A, B and C. The costs of ingredients are $8 per kg for A, $ 10 per kg for B and $11 per kg for C. No more than 35,000 kgs of A can be used and at least 1500 kgs of B must be used. Also at least 2000 kgs of C is required. Calculate the number of kgs. for each ingredients to use in order to minimize the total cost for 10000 kgs.

a)   Formulate the problem as a linear programming model, clearly defining the variables, the objective function and the constraints.

b)   Solve the problem using Simplex method and Excel Solver.

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