Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the problem of formulating an LP where for the production of three grades gasoline, gas1, gas2 and gas3 sold at $90, $ 118 and

Consider the problem of formulating an LP where for the production of three grades gasoline, gas1, gas2 and gas3 sold at $90, $ 118 and $ 130 per barrel; the minimum required octane rating are respectively 87, 89 and 92. The manufacturer uses three crudes; crude 1, crude 2 and crude 3, with octane ratings respectively as follows: 70, 80, and 98. There are 190 barrels of crude 1 available, 150 barrels of crude 2 available and 90 barrels of crude 3 available. The production of gas3 should not exceed 20 barrels.

Define the decision variables: and formulate the problem as an LP to maximize revenue. Implement the LP on Excel and give (a) optimal solution, (b) optimal value and (c) shadow prices of each constraint. Name the constraint by what it refers to. (20 + 10 =30 points)

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

Principles Of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter

13th Edition

9780132738729, 136119468, 132738724, 978-0136119463

More Books

Students also viewed these Finance questions

Question

Explain walter's model of dividend policy.

Answered: 1 week ago