ning scenario mining company owns two mines each of which

Last updated: 10/9/2023

ning scenario mining company owns two mines each of which produces three grades high medium and low of ore The company has a contract to supply a smelting company with at least 12 tons of high grade ore at least 8 tons of medium grade ore and at least 24 tons of low grade ore Each hour of operation mine 1 produces 6 tons of high grade ore 2 tons of medium grade ore and 4 tons of low grade ore Each hour of operation mine 2 produces 2 tons of high grade ore 2 tons of medium grade ore and 12 tons of low grade ore It costs 200 per hour to operate mine 1 and 160 per hour to operate mine 2 How many hours should each mine be operated so as to meet the contractual obligations at the lowest total operating cost Microsoft Excel 16 0 Sensitivity Report 2 Worksheet 2 xlsx solution 3 Report Created 10 26 2019 7 20 34 PM 4 5 6 Variable Cells 7 8 Cell Name 853 X1 Hours to operate Mine 1 SCS3 X2 Hourse to operate Mine 2 9 10 11 12 Constraints 13 14 15 16 17 Cell Name SES6 High grade constraint LHS SE57 Medium grade constarint LHS SES8 Low grade constarint LHS Decrease Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase 200 280 160 40 93 33333333 1 3 None of the above 0 0 Final Shadow Constraint Allowable R H Side Increase Value Price 12 8 40 10 70 0 12 8 24 8 4 16 40 Allowable Decrease 4 2 1E 30 Use this sensitivity report to answer the questions below If the cost per hour to operate Mine 1 was 300 Would 1 3 remain optimal What minimum Cost could be realized 1 3 will not remain optimal because 100 is not within the allowable increase of 40 1 3 will remain optimal because 100 is not within the allowable increase of 280 The minimum Cost will now be 780 1 3 will not remain optimal because 100 is not within the allowable increase of 280 1 3 will remain optimal because 100 is within the allowable increase of 280 The minimum Cost will now be 780