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A paper recycling company converts newspaper, mixed paper, white office paper, and cardboard into pulp for newspring, packaging paper, and print stock quality paper. The following table summarizes the yield for each kind of pulp recovered from each ton of recycled material. Recycling Yield Newsprint Packaging Print Stock Newspaper 85% 80% 2014 Mixed Paper 90% 80% 70% White Office Paper 90% 85% 80% Cardboard 80% 70% -- For instance, a ton of newspaper can be recycled using a technique that yields a 0.85 tons of newsprint pulp. Alternatively, a ton of newspaper can be recycled using a technique that yields 0.80 tons of packaging paper. Similarly, a ton of cardboard can be recycled to yeild0.80 tons of newsprint or 0.70 tons of packaging paper pulp. Note that newspaper and cardboard cannot be converted to print stock pulp using the techniques available to the recycler The cost of processing each ton of raw material into the various types of pulp is summarized in the following table along with the amount of each of the four raw materials that can be purchased and their cost. Processing Costs per Ton Purchase costs per ton Tons available Newsprint Packing Print Stock Newspaper $6.50 $11 -- $15 600 Mixed Paper $9.75 $12.25 $9.50 $16 500 White office paper $4.75 $7.75 $8.50 $19 300 Cardboard $7.50 $8.50 -- $17 400 The recycler wants to determine the least costly way of producing 500 tons of newsprint pulp, 600 tons of packing paper pulp, and 300 tons of print stock quality pulp. What is the optimal solution? 

Operation Management, Management Studies

  • Category:- Operation Management
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