Chemco Example
Chemco produces 3 products A, B and C. They can sell up to 30 pounds of each product at the following prices per pound:
- product A -- $10
- product B -- $12
- product C -- $20
Chemco purchaces raw material at $5/lb.
Each pound of raw material can be used to produce either 1 lb. or A or 1 lb. of B.
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For a cost of $3/lb., product A can be converted to .6 lb. of product B and
.4 lb. of product C.
- For a cost of $2/lb., product B can be converted to .8 lb. of product C.
Formulate an LP to maximize profit.