Problem

Eli Daisy manufactures two drugs in Los Angeles and Indianapolis. The cost of manufacturin...

Eli Daisy manufactures two drugs in Los Angeles and Indianapolis. The cost of manufacturing a pound of each drug is shown in Table 70.

The machine time (in hours) required to produce a pound of each drug at each city is as in Table 71.

Daisy needs to produce at least 1.000 pounds of drug 1 and 2,000 pounds of drug 2 per week. The company has 500 hours pet week of machine time in Indianapolis and 400 hours per week of machine time in Los Angeles. Determine how Lilly can minimize the cost of producing the needed drugs.

table 70

City

Drug 1 Cost ($)

Drug 2 Cost ($)

Indianapolis

4.10

4.50

Los Angeles

4.00

5.20

table 71

City

Drug 1 Time (Hr)

Drug 2 Time (Hr)

Indianapolis

.2 

.3 

Los Angeles

.24

.33

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