Question
An oil manufactures three types of gasoline (gas 1, gas 2 and gas 3). Each type is produced by blending three types of crude oil
An oil manufactures three types of gasoline (gas 1, gas 2 and gas 3). Each type is produced by blending three types of crude oil (crude A, crude B and crude C). The sales price per barrel of gasoline and the purchase price per barrel of crude oil are given in the table.
The company can purchase up to 5000 barrels of each type of crude oil daily. The three types of gasoline differ in their octane rating and sulfur content. The crude oil blended to form gas 1 must have an average octane rating of at least 90 and contain at most 1% sulfur. The crude oil blended to form gas 2 must have an average octane rating of at least 89 and contain at most 2% sulfur. The crude oil blended to form gas 3 must have an octane rating of at least 87 and contain at most 1% sulfur. The octane rating and the sulfur content of the three types of oil are given in the table.
It costs $4 to transform one barrel of oil into one barrel of gasoline, and their refinery can produce up to 14,000 barrels of gasoline daily. Their customers require at least the following amounts of each gasoline: gas 1= 3000 barrels per day; gas 2=2000 barrels per day; gas 3=1000 barrels per day.
The company considers it an obligation to meet these demands. Formulate an LP that will maximize daily profits.
HINT: you may wish to rearrange the input data tables before you build the model to make your model more efficient.
USE SOLVER. SHOW ALL WORK ON THIS TAB.
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