This question related to management science where we apply what we have learned to complete a project problem. I am trying to ensure I do the mathematical portion correctly. Seeing a solution helps me to understand the math.
Skillings Industrial Chemicals, Inc
Develop an approach to the problem that will allow the company to determine how much primary product to produce, given the limitations on the amounts of the raw material available. Include recommendations as to how the company should dispose of the liquid waste to satisfy the environmental protection guidelines. How many pounds of product K should be produced? How many pounds of product M should be produced? How many pounds of liquid waste should be specially treated and dumped into the river? Include a discussion and analysis of the following in your report:
1. A cost analysis showing the profit contribution per pound for the primary product, product K, and product M.
2. The optimal production quantities and waste disposal plan, including the projected profit.
3. A discussion of the value of additional pounds of each raw material.
4. A discussion of the sensitivity analysis of the objective function coefficients.
The Solution completes the costing analysis to provide a basis for answer the Skillings Industrial Chemicals question.