Molecular Products produces three chemicals: B, C, and D. The company begins by purchasing chemical A for a cost of $650 per 100 liters. For an additional cost of $320 and the use of three hours of skilled labor, 100 liters of A can be transformed into 40 liters of C and 60 liters of B. Chemical C can either be sold or processed further. It costs $130 and one hour of skilled labor to process 100 liters of C into 60 liters of D and 40 liters of B. For each chemical, the selling price per 100 liters and the maximum amount (in 100s of liters) that can be sold are listed in the file P04_93.xlsx. A maximum of 200 labor hours is available. Determine how Molecular can maximize its profit. a. What is the optimal amount of chemical A the company should purchase? If needed, round your answer to a whole number. ________ liters b. What is the optimal amount of chemical C the company should reprocess? If needed, round your answer to a whole number. ________liters c. What is the optimized profit to the company? If needed, round your answer to a whole number. $________ Molecular Products data Note: all units of product are in 100s of liters Product B C D Selling prices $1,250 $1,640 $2,680 Maximum sales 30 60 40
Molecular Products produces three chemicals: B, C, and D. The company begins by purchasing chemical A for a cost of $650 per 100 liters. For an additional cost of $320 and the use of three hours of skilled labor, 100 liters of A can be transformed into 40 liters of C and 60 liters of B. Chemical C can either be sold or processed further. It costs $130 and one hour of skilled labor to process 100 liters of C into 60 liters of D and 40 liters of B. For each chemical, the selling price per 100 liters and the maximum amount (in 100s of liters) that can be sold are listed in the file P04_93.xlsx. A maximum of 200 labor hours is available. Determine how Molecular can maximize its profit.
a. What is the optimal amount of chemical A the company should purchase? If needed, round your answer to a whole number. ________ liters
b. What is the optimal amount of chemical C the company should reprocess? If needed, round your answer to a whole number. ________liters
c. What is the optimized profit to the company? If needed, round your answer to a whole number. $________
| Molecular Products data | |||
| Note: all units of product are in 100s of liters | |||
| Product | B | C | D |
| Selling prices | $1,250 | $1,640 | $2,680 |
| Maximum sales | 30 | 60 | 40 |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
