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An gasoline blending operation has three types of inputs, with the following prices and charac- teristics: Input Price # per litre 1 $0.72 2
An gasoline blending operation has three types of inputs, with the following prices and charac- teristics: Input Price # per litre 1 $0.72 2 $0.80 93 3 $0.85 109 Output # 1 2 Octane Rating 84 Price per litre $0.83 $0.91 Vapour Pressure (kPa) The inputs are blended to produce two outputs, with the following outputs and promised speci- fications: 56 48 37 Minimum Octane Rating 86 95 Maximum Vapour Pressure (kPa) 54 39 The blending operation has a capacity of 1,000,000 litres/day overall. Subject to the overall capacity, up to 500,000 litres/day of any input, or 650,000 litres/day of any output can be handled. We can assume that there are no losses in the blending process, and that the characteristics of the outputs are a weighted average (by volume) of the characteristics of the inputs. (a) Formulate a model for this problem, taking care to define each of the variables used. (b) Solve the model using Excel. (c) State the recommendation.
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