In: Statistics and Probability
Perth Mining Company operates two mines for the purpose of extracting gold and silver. The Saddle Mine costs $15,000/day to operate, and it yields 65 oz of gold and 2500 oz of silver each day. The Horseshoe Mine costs $16,000/day to operate, and it yields 70 oz of gold and 900 oz of silver each day. Company management has set a target of at least 485 oz of gold and 7,900 oz of silver. How many days should each mine be operated so that the target can be met at a minimum cost?
Since 111 is the smallest value we conclude that the Saddle mine should operate 1 day and Horseshoe Mine should operate 6 days to minimize the cost.