Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. (20 points) The Aztec Refining Company produces two types of unleaded gasoline, regular and premium, which it sells for $12 and $14 per barrel
1. (20 points) The Aztec Refining Company produces two types of unleaded gasoline, regular and premium, which it sells for $12 and $14 per barrel respectively. Both types of gasoline are made from either refined domestic or refined foreign oil. The gasolines must meet the following requirements. Maximum Vapor Minimum Octane Maximum Demand Minimum Deliveries Pressure Rating (Barrels/Week) (Barrels/Week) Regular 23 88 100,000 50,000 Premium 23 93 20,000 5,000 The constituents of a blend contribute to the overall octane rating and vapor pressure according to their percentages by weight. The characteristics of the refined oils are as follows Vapor Octane Inventory Cost Pressure Rating (Barrels) (Dollars/Barrel) Domestic 25 87 40,000 Foreign 15 98 60,000 15 Formulate a linear program to help Aztec Refining determine how much of each type of oil should be blended into each type of gasoline in order to maximize net profit. Be sure to clearly define your variables and label your objective function and constraints
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started