Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Sunco processes oil into aviation fuel and heating oil. It costs $40 to purchase each 1000 barrels of oil, which is then distilled and

image text in transcribed
1. Sunco processes oil into aviation fuel and heating oil. It costs $40 to purchase each 1000 barrels of oil, which is then distilled and yields 500 barrels of aviation fuel and 500 barrels of heating oil. Output from the distillation may be sold directly or processed in the catalytic cracker. If sold after distillation without processing, aviation fuel sells for $60 per 1000 barrels, and heating oil sells for $40 per 1000 barrels. It takes 1 hour to process 1000 barrels of aviation in the catalytic cracker, and these 1000 barrels can be sold for $130. It takes 45 minutes to process 1000 barrels of heating oil in the cracker, and these 1000 barrels can be sold for $90. Each day, at most 20000 barrels of oil can be purchased, and 8 hours of cracker time are available. Formulate an LP to maximize Sunco's profits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital In The Twenty-First Century

Authors: Thomas Piketty, Arthur Goldhammer

1st Edition

067443000X, 9780674430006

More Books

Students also viewed these Economics questions

Question

=+d) Can you reject the null hypothesis of part c? Explain.

Answered: 1 week ago