Two Mining Fields, Field a and Field B of a Coal

question 31

Essay

Two mining fields, field A and field B of a coal mining company produce Lignite and Bituminous coal. The operating cost per day for field A and field B are $55,000 and $45,000, respectively. The recent records at the company indicate that the mining field A can produce 250 tons of Lignite along with 300 tons of Bituminous coal per day whereas the mining field B can produce 200 tons of Lignite along with 450 tons of Bituminous coal per day. The demand for Lignite is expected to be 120,000 tons and for Bituminous coal, it is expected to be 170,000 tons. The expected demand should be met. To minimize the operating costs of the mining fields, how many days does the company need to operate each of these fields?

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Definitions:

Procurement

The process of finding, acquiring, and buying goods, services, or works from an external source, often via tendering or competitive bidding processes.

Procurement

Procurement is the process of finding, agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process.

Sourcing

The process of identifying, evaluating, and securing suppliers or sources for goods and services that a company needs to operate.