Sunco Oil has three different processes that can be used to manufacture various types of gasoline. Each
Question:
Sunco Oil has three different processes that can be used to manufacture various types of gasoline. Each process involves blending oils in the company’s catalytic cracker.
Running process 1 for an hour costs $5 and requires 2 barrels of crude oil 1 and 3 barrels of crude oil 2. The output from running process 1 for an hour is 2 barrels of gas 1 and 1 barrel of gas 2. Running process 2 for an hour costs $4 and requires 1 barrel of crude 1 and 3 barrels of crude 2. The output from running process 2 for an hour is 3 barrels of gas 2. Running process 3 for an hour costs $1 and requires 2 barrels of crude 2 and 3 barrels of gas 2. The output from running process 3 for an hour is 2 barrels of gas 3. Each week, 200 barrels of crude 1, at $2/barrel, and 300 barrels of crude 2, at $3/barrel, may be purchased. All gas produced can be sold at the following per-barrel prices:
gas 1, $9; gas 2, $10; gas 3, $24. Formulate an LP whose solution will maximize revenues less costs. Assume that only 100 hours of time on the catalytic cracker are available each week.
Step by Step Answer:
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston