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

change as the price of gasoline ranges from $65 to $85 per barrel.

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Problem 2 Problem 4.78(a) - Oil Company (p. 204) Selling price per barrel Input C Os Density Viscosit Sulfur y Light gas oil Heavy gas oil $69.50 0.83 40 1.0 $66.70 0.88 26 2.2 Waxy distillate $56.40 0.92 30 2.8 Atmospheric residue $16.50 0.97 65 4.1 Vacuum residue $10.40 1.50 48 5.0 Upper limits Blending plan (1000s of barrels) Input Input Availabl used e Light gas oil 40 Heavy gas oil