What should paper mill do to satisfy order at minimum cost

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Reference no: EM131926267

Problem

A paper mill sells rolls of paper to newspapers, which usually place orders for rolls of different widths. The mill has just received a large order for 1.5 million feet of 4-foot-wide paper, 6 million feet of 9-foot-wide paper, and 3 million feet of 12-footwide paper. It produces rolls of two sizes: (1) 3,000 feet long and 14 feet wide, at a cost of $600 per roll, and (2) 3,000 feet long and 20 feet wide, at a cost of $1,100 per roll. Large cutting machines are then used to cut these rolls to rolls of desired widths.

(a) What should the paper mill do to satisfy this order at minimum cost?

(b) The paper mill is very concerned about the environment. Rather than determine the cheapest way of satisfying the current order, the firm would like to determine the least wasteful way (i.e., minimize the amount of paper wasted). What is the solution with this revised objective, and what is the new cost?

Reference no: EM131926267

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