Exeter Mines produces iron ore at four different mines; however, the ores extracted at each mine...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Exeter Mines produces iron ore at four different mines; however, the ores extracted at each mine are different in their iron content. Mine 1 produces magnetite ore, which has a 70% iron content; mine 2 produces limonite ore, which has a 60% iron content; mine 3 produces pyrite ore, which has a 50% iron content; and mine 4 produces taconite ore, which has only a 30% iron content. Exeter has three customers that produce steel-Armco, Best, and Corcom. Armco needs 400 tons of pure (100%) iron, Best requires 250 tons of pure iron, and Corcom requires 290 tons. It costs $37 to extract and process 1 ton of magnetite ore at mine 1, $46 to produce 1 ton of limonite ore at mine 2, $50 per ton of pyrite ore at mine 3, and $42 per ton of taconite ore at mine 4. Exeter can extract 350 tons of ore at mine 1; 530 tons at mine 2; 610 tons at mine 3; and 490 tons at mine 4. The company wants to know how much ore to produce at each mine in order to minimize cost and meet its customers' demand for pure (100%) iron. Formulate a linear programming model for this problem. Solve the linear programming model for computer. a. Do any of the mines have slack capacity? If yes, which one(s)? b. If Exeter Mines could increase production capacity at any one of its mines, which should it be? Why? c. If Exeter decided to increase capacity at the mine identified in (b), how much could it increase capacity before the optimal solution point (i.e., the optimal set of variables) would change? Exeter Mines by using the d. If Exeter determined that it could increase production capacity at mine 1 from 350 tons to 500 tons, at an increase in production costs to $43 per ton, should it do so? Exeter Mines produces iron ore at four different mines; however, the ores extracted at each mine are different in their iron content. Mine 1 produces magnetite ore, which has a 70% iron content; mine 2 produces limonite ore, which has a 60% iron content; mine 3 produces pyrite ore, which has a 50% iron content; and mine 4 produces taconite ore, which has only a 30% iron content. Exeter has three customers that produce steel-Armco, Best, and Corcom. Armco needs 400 tons of pure (100%) iron, Best requires 250 tons of pure iron, and Corcom requires 290 tons. It costs $37 to extract and process 1 ton of magnetite ore at mine 1, $46 to produce 1 ton of limonite ore at mine 2, $50 per ton of pyrite ore at mine 3, and $42 per ton of taconite ore at mine 4. Exeter can extract 350 tons of ore at mine 1; 530 tons at mine 2; 610 tons at mine 3; and 490 tons at mine 4. The company wants to know how much ore to produce at each mine in order to minimize cost and meet its customers' demand for pure (100%) iron. Formulate a linear programming model for this problem. Solve the linear programming model for computer. a. Do any of the mines have slack capacity? If yes, which one(s)? b. If Exeter Mines could increase production capacity at any one of its mines, which should it be? Why? c. If Exeter decided to increase capacity at the mine identified in (b), how much could it increase capacity before the optimal solution point (i.e., the optimal set of variables) would change? Exeter Mines by using the d. If Exeter determined that it could increase production capacity at mine 1 from 350 tons to 500 tons, at an increase in production costs to $43 per ton, should it do so?
Expert Answer:
Answer rating: 100% (QA)
The linear programming model for this problem is as follows Minimize cost 37x1 46x2 50x3 42x4 Subjec... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Exeter Mines produces iron ore at four different mines however the ores extracted at each mine are different in their iron content. Mine 1 produces magnetite ore, which has a70% iron content; mine 2...
-
Exeter Mines produces iron ore at four different mines; however, the ores extracted at each mine are different in their iron content. Mine 1 produces magnetite ore, which has a 70% iron content; mine...
-
Each ton of ore mined from the Baby Doe Mine in Leadville, Colorado, produces one ounce of silver and one pound of lead in a fixed 1:1 ratio. Marginal costs are $10 per ton of ore mined. The demand...
-
A billboard at the top of a building is being illuminated by a projection light (L) that is 103 feet from the base of the building as shown in the figure. Determine how tall the billboard if its...
-
Suppose that your Engel curve for X is given by the equation X = a + bI where I is income and a and b are constants. a. If your income increases from I to I + I, by how much does X increase? b. Write...
-
The beam is made from three boards nailed together as shown. If the moment acting on the cross section is M = 600 N m, determine the maximum bending stress in the beam. Sketch a three-dimensional...
-
Which item(s) appears as a reconciling item(s) to the book balance in a bank reconciliation? a. Outstanding checks b. Deposits in transit C. Both a and b d. None of the above
-
Describe the mistakes that the Chamber has made since the implementation of the Unitrak softwarei.e., since the Midsouth Chamber of Commerce (A) case study. What should they have done differently? As...
-
Since McDonald\'s entered the coffee market, it has heavily advertised to gain customer awareness and interest. To retain loyalty, they have used a \"buy 7 get 8 th \" free program. What is this an...
-
A Critical Care ICU unit with the following labor standards in HPPD and a budgeted average daily census of 20/day will need a minimum of how many FTEs in their total paid FTEs? Required data is...
-
Discuss how government intervenes in the success and failure of businesses. Are there any recent news events that can support your position?
-
Ethical behavior requires an individual to a. Act only in accord with the law. b. Perceive the ethical implications of a situation only if it involves the possibility of unlawful conduct. c. Consider...
-
The default privacy settings of a certain online social networking service are such, that messages posted by a user are visible to their author and to all of her/his contacts, as well as to the...
-
What conflict did the ZZZZ Best case cause between the auditor's "public duty" and the Code of Professional Conduct?
-
Answer these questions about the history of auditing. a. Describe a method of auditing that seemed to be prevalent in ancient Egypt and Babylonia. b. Describe the audit of public accounts in ancient...
-
In what way did the Hochfelder case put limitations on auditor liability under Section 10 (b) of the Securities Exchange Act of 1934 ?
-
You are the head of market strategies for a large media company, and you are responsible for leading the enterprise through its annual marketing planning process. Which one of the following...
-
Draw two scatterplots, one for which r = 1 and a second for which r = 21.
-
The Goliath Tool and Machine Shop produces a single product that consists of three subcomponents that are assembled to form the product. The three components are manufactured in an operation that...
-
Solve the following linear programming model graphically and explain the solution result: maximize Z = 110x1 + 75x2 subject to 2x1 + x2 40 -6x1 + 8x2 120 70x1 + 105x2 2,100 x1, x2 0
-
The athletic boosters club for Beaconville has planned a 2-day fund-raising drive to purchase uniforms for all the local high schools and to improve facilities. Donations will be solicited during the...
-
As an SE, why should you be expected to understand the contents of this chapter?
-
Who owns a specification and what is their authority to implement changes?
-
What are the basic types of specifications?
Study smarter with the SolutionInn App