A steel company has two mills. Mill 1 costs $70,000 per day to operate, and it can produce 400 tons of high-grade steel, 500 tons of medium-grade steel, and 450 tons of low-grade steel each day. Mill 2 costs $60,000 per day to operate, and it can produce 350 tons of high-grade steel, 600 tons of medium-grade steel, and 400 tons of low-grade steel each day. The company has orders totaling 100,000 tons of high-grade steel, 150,000 tons of medium-grade steel, and 124,500 tons of low-grade steel. Use the Simplex technique( do not use excel show workings to find out how many days the company should run each mill to minimize its costs and still fill the orders.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
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5. A steel company has two mills. Mill 1 costs $70,000 per day to operate, and it can
produce 400 tons of high-grade steel, 500 tons of medium-grade steel, and 450 tons of
low-grade steel each day. Mill 2 costs $60,000 per day to operate, and it can produce 350
tons of high-grade steel, 600 tons of medium-grade steel, and 400 tons of low-grade steel
each day. The company has orders totaling 100,000 tons of high-grade steel, 150,000 tons
of medium-grade steel, and 124,500 tons of low-grade steel. Use the Simplex technique(
do not use excel show workings) to find out how many days the company should run
each mill to minimize its costs and still fill the orders.
Transcribed Image Text:5. A steel company has two mills. Mill 1 costs $70,000 per day to operate, and it can produce 400 tons of high-grade steel, 500 tons of medium-grade steel, and 450 tons of low-grade steel each day. Mill 2 costs $60,000 per day to operate, and it can produce 350 tons of high-grade steel, 600 tons of medium-grade steel, and 400 tons of low-grade steel each day. The company has orders totaling 100,000 tons of high-grade steel, 150,000 tons of medium-grade steel, and 124,500 tons of low-grade steel. Use the Simplex technique( do not use excel show workings) to find out how many days the company should run each mill to minimize its costs and still fill the orders.
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