Reference no: EM132913055

Question - A pharmaceutical company manufactures two drugs at Los Angeles and Indianapolis. The cost of manufacturing a pound of each drug depends on the location. It costs $4.10 to manufacture one pound of drug #1 and $4.50 to manufacture one pound of drug #2 in Indianapolis. It costs $4.00 to manufacture one pound of drug #1 and $5.20 to manufacture one pound of drug #2 in Los Angeles. The machine time (in hours) required to produce a pound of each drug at each city is as follows: 0.20 for drug #1 and 0.30 for drug #2 in Indianapolis; 0.24 for drug #1 and 0.33 for drug #2 in Los Angeles. The company must produce at least 1,000 pounds per week of drug #1 and at least 2,000 pounds per week of drug #2. It has 500 hours per week of available machine time at Indianapolis and 400 hours per week available at Los Angeles.

Required - Determine how the company can minimize the cost of producing the required drugs?