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Photo Chemicals produces two types of photographic developing fluids. Both products cost Photo Chemicals $1 per gallon toproduce. Based on an analysis of current inventory levels andoutstanding orders for the next month, Photo Chemicals’management specified that at least 30 gallons of product 1 and atleast 20 gallons of product 2 must be produced during the next twoweeks. Management also stated that an existing inventory ofhighly perishable raw material required in the production of bothfluids must be used within the next two weeks. The currentinvemtory of the perishable raw material is 80pounds. Although more of this raw material can be ordered ifnecessary, any of the current any of the current inventory that isnot used within the next two weeks will spoil – hence,the management requirement that at least 80 pounds be used in thenext two weeks. Furthermore, it is known that product 1requires 1 pound of this perishable raw material per gallon andproduct 2 reaquires 2 pounds of the raw material pergallon. Because Photo Chemicals’ objective is to keepits production costs at a minimum possible level, the firm’smanagement is looking for a minimum cost production plan that usesall the 80 pounds of perishable raw material and provides at least30 gallons of product 1 and at least 20 gallons of product 2.
a. What is ht minimumcost solution?
b. Formulate a linear programmingmodel that can be used to determine how Photo Chemicals canallocate its resources.
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