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Chandler Oil Company has 5 0 0 0 barrels of oil 1 and 1 0 0 0 0 barrels of oil 2 . The company
Chandler Oil Company has barrels of oil and barrels of oil The company sells two
products gasoline and heang oil. Both the products are produced by combining oil and oil
The quality level of the inputs or ingredients are different; the quality level of oil is ; the
quality level of oil is Gasoline must have an average quality of level of at least and heang
oil must have a quality level of at least Demand for each product is created by adversement.
Each dollar spent adversing gasoline creates a demand of barrels for gasoline; each dollar
spent adversing heang oil creates a demand of barrels for heang oil. Gasoline is sold for
$ per barrel, and heang oil is sold for $ per barrel. Formulate and LP to help Chandler
maximize profit. Assume that addional amounts of oil or oil cannot be purchased.
Hint the quality level of the products would be calculated by taking the weighted average of the
quality of the input oils
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