There are three factories I, II, and III that each produce the same two types of pollutants (1 and 2). The waste from each factory can be treated to reduce the tons ofpollutants being emitted. For Factory I it costs $15 per ton to reduce pollutant 1 by 0.10 ton and pollutant 2 by 0.45 ton. For Factory II it costs $10 per ton for similarreductions of 0.10 of pollutant 1 and 0.25 of pollutant 2. For $ 20 per ton the figures for Factory III are 0.40 for pollutant 1 and 0.30 for pollutant 2.The state requires an overall reduction of 42 tons of pollutant 1 and 56 tons of pollutant 2. In order to achieve this goal with minimum cost the state will choose thefollowing values:Set up the LP and then solve with softwareTons of Factory I processed =Tons of Factory Il processed =Tons of Factory III processd =

Cost minimisation tries to answer the crucial question of how to select inputs to create a given…

Answered: There are three factories I, II, and…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 41P

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At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is 100, 90, 50, or 10, respectively. After observing the condition of the machine at the beginning of the week, the company has the option, for a cost of 200, of instantaneously replacing the machine with an excellent machine. The quality of the machine deteriorates over time, as shown in the file P10 41.xlsx. Four maintenance policies are under consideration: Policy 1: Never replace a machine. Policy 2: Immediately replace a bad machine. Policy 3: Immediately replace a bad or average machine. Policy 4: Immediately replace a bad, average, or good machine. Simulate each of these policies for 50 weeks (using at least 250 iterations each) to determine the policy that maximizes expected weekly profit. Assume that the machine at the beginning of week 1 is excellent.
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