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Bay Oil produces two types of fuel (regular and super) by mixing three ingredients. The major distinguishing feature of the two products is the octane
Bay Oil produces two types of fuel (regular and super) by mixing three ingredients. The major distinguishing feature of the two products is the octane level required. Regular fuel must have a minimum octane level of 90, whereas super must have a level of at least 100. The cost per barrel, octane levels, and available amounts (in barrels) for the upcoming two-week period appear in the following table, along with the maximum demand for each end product and the revenue generated per barrel.
Ingredient Cost/Barrel Octane Available (barrels)
1 $16.50 100 170,000
2 $14.00 87 410,000
3 $17.50 110 360,000
Revenue/Barrel Max Demand (barrels)
Regular $18.50 410,000
Super $20.00 560,000
Develop and solve a linear programming model to maximize contribution to profit. (Assume
Ri
is the amount of ingredient i used in producing regular, and
Si
is the amount of ingredient i used in producing Super. Use the units of barrels and dollars for all answers.)Max
s.t.Input 1 Capacity
Input 2 Capacity
Input 3 Capacity
Max Demand for Regular
Max Demand for Super
Required Octane Level, Regular
Required Octane Level, Super
R1, R2, R3, S1, S2, S3 0
What is the optimal contribution to profit?Report your values for
R1, R2, R3, S1, S2, S3.
(R1, R2, R3, S1, S2, S3) =
What is the maximum profit (in dollars)?$
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