Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carrington Oil produces two types of gas (Gas 1 and Gas 2) from two types of crude oil: heavy and light. Assume that one barrel

image text in transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed
Carrington Oil produces two types of gas (Gas 1 and Gas 2) from two types of crude oil: heavy and light. Assume that one barrel of crude results in one barrel of gas. Gas 1 sells for $72 per barrel, Gas 2 sells for $84 per barrel. The cost per barrel of each crude, their availability, and the level of impurities in each crude are listed below. Heavy crude Light crude oil oil Cost per barrel $58 $85 Availability (barrels) 8.000 7,000 Impurity percentage 12% 4% - Up to 4,200 barrels of Gas 1 can be sold; no more than 65% of all gas that is produced can be Gas 2. - Gas 1 can contain up to 8% impurities and Gas 2 can contain up to 5% impurities. Use the following decision variables: H, = amount of heavy crude used for Gas 1 (in barrels) H2 = amount of heavy crude used for Gas 2 (in barrels) Ly = amount of light crude used for Gas 1 (in barrels) L2 = amount of light crude used for Gas 2 (in barrels) Formulate the standard LP model for this problem to maximize profit:\f(.l For Line 5, which one of the following is correct?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CFIN

Authors: Scott Besley, Eugene Brigham

5th edition

1305661656, 9781305888036 , 978-1305666870

More Books

Students also viewed these Finance questions

Question

When is the deadline?

Answered: 1 week ago