A scrap metal dealer has received an order from customer for at least 2000 kilograms of...

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A scrap metal dealer has received an order from customer for at least 2000 kilograms of scrap metal, the customer requires that at least 1000 kilograms of the shipment of metal must be of high Quality metal called Alpha, that can be melted down to and used to produce metal tubing. Furthermore, the customer will not accept delivery of the order if it contains more than 175 Kilograms of metal that he deems unfit for commercial use like metal that contains an excessive amount of impurities and cannot be melted down and refined profitably. The dealer can purchase scrap metal from two different suppliers in unlimited quantities with the following percentages (by weight) of Alpha and unfit scrap. Alpha Supplier A Supplier B 25% Unfit scrap 5% 75% 10% The costs per kilogram of metal purchased from supplier A and supplier B are Kes 1 and Kes 4 respectively. Required: Determine the optimum quantities of metal for the dealer to purchase from each of the two suppliers A scrap metal dealer has received an order from customer for at least 2000 kilograms of scrap metal, the customer requires that at least 1000 kilograms of the shipment of metal must be of high Quality metal called Alpha, that can be melted down to and used to produce metal tubing. Furthermore, the customer will not accept delivery of the order if it contains more than 175 Kilograms of metal that he deems unfit for commercial use like metal that contains an excessive amount of impurities and cannot be melted down and refined profitably. The dealer can purchase scrap metal from two different suppliers in unlimited quantities with the following percentages (by weight) of Alpha and unfit scrap. Alpha Supplier A Supplier B 25% Unfit scrap 5% 75% 10% The costs per kilogram of metal purchased from supplier A and supplier B are Kes 1 and Kes 4 respectively. Required: Determine the optimum quantities of metal for the dealer to purchase from each of the two suppliers

Answer rating: 100% (QA)

The dealer should purchase 1600 kilograms from supplier A and 400 kil... View the full answer