Question
An oil company produces gasoline from five inputs. The cost, density, viscosity, and sulfur content, and the number of barrels available of each input are
An oil company 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 $75 per barrel. Gasoline can have a density of at most 0.95 units per barrel, a viscosity of at most 35 units per barrel, and a sulfur content of at most 3.3 units per barrel. a. How can the company maximize its profit? b. Describe how the optimal solution to the problem changes as the price of gasoline ranges from $65 to $85 per barrel.
I need step by step
2) | |||||
Selling price per barrel | 75 | ||||
Input | Cost | Density | Viscosity | Sulfur | |
Light gas oil | $69.50 | 0.83 | 40 | 1.00 | |
Heavy gas oil | $66.70 | 0.88 | 26 | 2.20 | |
Waxy Distilate | $56.40 | 0.92 | 30 | 2.80 | |
Atmospheric Residue | $16.50 | 0.97 | 65 | 4.10 | |
Vaccum Residue | $10.40 | 1.50 | 48 | 5.00 | |
Upper Limit | 0.95 | 35 | 3.30 | ||
Blending Plan (1000s barrell) | |||||
Input | Inputs used | Inputs available | |||
Light gas oil | 0 | <= | 40,000 | ||
Heavy gas oil | 0 | <= | 50,000 | ||
Waxy distilate | 0 | <= | 70,000 | ||
Atmospheric residue | 0 | <= | 60,000 | ||
Vaccum residue | 0 | <= | 80,000 | ||
Input Sum | 0 | 300000 | |||
Constraints | Dentisty | Viscosity | Sulfur | ||
Actual | 0 | 0 | 0 | ||
<= | <= | <= | |||
Max | |||||
Cost | $0.00 | Revenue | 0 | ||
Profit | $0.00 | ||||
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