Rylon Corporation manufactures Brute and Chanelle perfumes. The raw material neededto manufacture each type of perfume can be purchased for $3 per pound. Processing 1 lbof raw material requires 1 hour of laboratory time. Each pound of processed raw material yields 3 oz of Regular Brute Perfume and 4 oz of Regular Chanelle Perfume. RegularBrute can be sold for $7/oz and Regular Chanelle for $6/oz. Rylon also has the option offurther processing Regular Brute and Regular Chanelle to produce Luxury Brute, sold at$18/oz, and Luxury Chanelle, sold at $14/oz. Each ounce of Regular Brute processed further requires an additional 3 hours of laboratory time and $4 processing cost and yields1 oz of Luxury Brute. Each ounce of Regular Chanelle processed further requires an additional 2 hours of laboratory time and $4 processing cost and yields 1 oz of LuxuryChanelle. Each year, Rylon has 6,000 hours of laboratory time available and can purchaseup to 4,000 lb of raw material. Formulate an LP that can be used to determine how Rylon can maximize profits. Assume that the cost of the laboratory hours is a fixed cost.

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Rylon Corporation manufactures Brute and Chanelle perfumes. The raw material needed
to manufacture each type of perfume can be purchased for $3 per pound. Processing 1 lb
of raw material requires 1 hour of laboratory time. Each pound of processed raw material yields 3 oz of Regular Brute Perfume and 4 oz of Regular Chanelle Perfume. Regular
Brute can be sold for $7/oz and Regular Chanelle for $6/oz. Rylon also has the option of
further processing Regular Brute and Regular Chanelle to produce Luxury Brute, sold at
$18/oz, and Luxury Chanelle, sold at $14/oz. Each ounce of Regular Brute processed further requires an additional 3 hours of laboratory time and $4 processing cost and yields
1 oz of Luxury Brute. Each ounce of Regular Chanelle processed further requires an additional 2 hours of laboratory time and $4 processing cost and yields 1 oz of Luxury
Chanelle. Each year, Rylon has 6,000 hours of laboratory time available and can purchase
up to 4,000 lb of raw material. Formulate an LP that can be used to determine how Rylon can maximize profits. Assume that the cost of the laboratory hours is a fixed cost.

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