Tuesday

March 31, 2015

March 31, 2015

Posted by **Anonymous** on Monday, August 20, 2012 at 10:53am.

Ore Copper Zinc Iron Waste Cost

La Paz ore 20 20 20 40 $100

Sucre ore 40 25 10 25 $140

Suppose the objective is to minimize the total purchasing costs, answer the following questions:

a) (20 Points) Write the linear programming model for this problem. Define the variables precisely. (Hint: MMP is deciding how many of each type of ore to buy in order to extract enough minerals to satisfy its customers.)

b) (20 Points) Find the optimal solution using the graphical method. Show all steps. Find the points of intersection algebraically.

c) (10 Points) Find the optimal solution using Excel Solver. Copy and paste the Excel spreadsheet and the Answer Report.

Answer the following two questions using the sensitivity report!

d) (Bonus 5 Points) what happen to the optimal decision and optimal cost if the price for La Paz ore increases to $110 per 100 pounds?

e) (Bonus 5 Points) what happen to the optimal decision and optimal cost if the demand for iron increased from 500 pounds to 550 pounds?

**Answer this Question**

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