Practical Management Science, 5th Edition Chapter 03, Problem 42, Pg 129 This is

Question

Practical Management Science, 5th Edition Chapter 03, Problem 42, Pg 129

This is for an analytics course.

Question a)

Follow the instructions within the problem (using the additional .xlsx document from the companion site) to build your model.

What is the optimal production plan and the corresponding costs?

Question b)

To see how much the extra is worth, subtract the cost in the table from the original cost on the Model sheet.

For 10 hours at Indy and 10 hours at LA, the company should be willing to pay $23.

For 50 hours at Indy and 50 hours at LA, the company should be willing to pay $117.

(More information about this is included within chapter 3 and the corresponding videos.)

The question from the text book is below. Work needs to be shown by excel tables and explained. Thank you!

A pharmaceutical company manufactures two drugs at Los Angeles and Indianapolis. The cost of manufacturing a pound of each drug depends on the location, as indicated in the file P03_ 42. xlsx. The machine time ( in hours) required to produce a pound of each drug at each city is also shown in this table. The company must produce at least 1000 pounds per week of drug 1 and at least 2000 pounds per week of drug 2. It has 500 hours per week of machine time at Indianapolis and 400 hours per week at Los Angeles.

a. Determine how the company can minimize the cost of producing the required drugs.

b. Use SolverTable to determine how much the company would be willing to pay to purchase a combination of A extra hours of machine time at Indianapolis and B extra hours of machine time at Los Angeles, where A and B can be any positive multiples of 10 up to 50.

Explanation / Answer

spending on 10 hours is occuring lesser amounts than spending 50 hours to the firm. so, spending 10 hours with $23 is better alternative to the firm.

sorry, you havent provided the table in the problem.

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