solution

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 P13 42.xlsx. The machine time (in hours) requires 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.

Hint: This problem has 4 decision variables and 4 constraints

	Drug 1		Drug 2
	Indianapolis	Los Angeles	Indianapolis	Los Angeles
Unit cost	$4.10	$4.00	$4.50	$5.20
Machine time	0.20	0.24	0.30	0.33

(step by step using excel screenshots please)