Oil Co is building a refinery to produce four products: diesel, gasoline, lubricants, and jet fuel. The minimum demand (in bbl/day) for each of these products is 14,000,30,000, 10,000, and 8,000, respectively. Iran and Dubai are under contract to ship crude to Oil Co.
Because of the production quotas specified by OPEC (Organization of Petroleum Exporting
Countries) the new refinery can receive at least 40% of its crude from Iran and the remaining amount from Dubai. Oil Co predicts that the demand and crude oil quotas will remain steady over the next ten years.
The specifications of the two crude oils lead to different product mixes: One barrel of Iran crude yields .2 bbl of diesel, .25 bbl of gasoline, .l bbl of lubricant, and .15 bbl of jet fuel. The corresponding yields from Dubai crude are .1, .6, .15, and .1, respectively.
Oil Co needs to determine the minimum capacity of the refinery (in bbl/day).