The Washington Chemical Company produces chemicals and solvents for the glue industry. The production process is divided into several focused factories,€™ each producing a specific set of products. The time has come to prepare the production plan for one of the focused Factories. This particular factory produces five products which must pass through both the reactor and the separator. Each product also requires a certain combination of raw materials. Production data are shown in Table.

The Washington Chemical Company has a long-term contract with a major glue manufacturer that requires annual production of 3,000 pounds of both products 3 and 4. More of these products could be produced because demand currently exceeds production capacity.
a. Determine the annual production quantity of each product that maximizes contribution to profits. Assume the company can sell all it can produce.
b. Specify the lot size for eachproduct.

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PRODUCTION DATA FOR WASHINGTON CHEMICAL Product Total Resources Available Resource Reactor (hr/lb) Separator (hrAb) 0.05 0.20 0.20 0.10 0.02 0.50 0.70 0.20 7.00 0.80 0.20 0.10 0.57 0.09 0.40 0.50 0.15 0.30 0.18 7,500 hr 7,500 hr 10,000 1b 6,000 b 7,000 b Raw material 1 (b) Raw material 2 (b) Raw material 3 (b) Profit contribution $/lb) 0.40 3.50 0.10 4.00 4.00 5.70 The total time available has been adjusted to account for setups. The five products have a prescribed sequence owing to the cost of changeovers betwe products. The company has a 35-day cycle (or 10 changeovers per year per product). Consequently, the time for these changeovers has been deducted the total time avaable for these machines.