A gold processor has two sources of gold ore, source A and source B. In order to keep his plant running, at least three tons of ore must be processed each day. Ore from source A costs $20 per ton to process, and ore from source B costs $10 per ton to process. Costs must not exceed $80 per day. Moreover, Federal Regulations require that the amount of ore from source B cannot exceed twice the amount of ore from source A. Ore from source A yields 2 oz. of gold per ton, and ore from source B yields 3 oz. of gold per ton.
1. Formulate this problem as a LP and write the linear programming model here. (Include definitions of decision variables, objective function and constraints.)
2. Solve the problem in QM for Windows. Paste image of Linear Programming Results window and Solution List window here.
3. How many tons of ore from both sources must be processed each day to maximize the amount of gold extracted? Explain your answer.
4. What is the maximum amount of gold extracted? Explain your answer.