Oilco produces gasoline from five inputs. The cost, density, viscosity, and sulfur content, and the number of

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Oilco produces gasoline from five inputs. The cost, density, viscosity, and sulfur content, and the number of barrels available of each input are listed in the file P04_78.xlsx. Gasoline sells for $72 per barrel. Gasoline can have a density of at most 0.98 units per barrel, a viscosity of at most 37 units per barrel, and a sulfur content of at most 3.7 units per barrel.

a. How can Oilco maximize its profit?

b. Describe how the optimal solution to the problem changes as the price of gasoline ranges from $65 to

$80 per barrel.

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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