Chemco produces two chemicals: A and B. These chemicals are produced via two manufacturing processes. Process 1 requites 2 hours of labor and 1 lb of raw material to produce 2 oz of A and 1 oz of B. Process 2 requires 3 hours of labor and 2 lb of raw material to produce 3 oz of A and 2 oz of B. Sixty hours of labor and 40 lb of raw material are available. Demand for A is unlimited, but only 20 oz of B can be sold. A sells for $16/oz, and B sells for $14/oz. Any B that is unsold must be disposed of at a cost of $2/oz. Formulate an LP to maximize Chemco’s revenue less disposal costs.
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