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Exercise 4 . 1 . An oil company is about to decide which crude oils to buy in order to fulfill the booked gas oil
Exercise An oil company is about to decide which crude oils to buy in order to fulfill the booked gas oil orders for next month. The company has booked orders for a total of gallons of gas oil type A and another gallons of gas oil type B These gas oil products can be made using crude oils of types and From each gallon of crude oil of type the refirtery extracts gallons of type A gas oil and gallons of type B gas oil the remaining gallon constitutes a valueless waste product Each gallon of crude oil of type gives gallons of gas oil A and gallons of gas oil B The prices of the crude oils are $ per gallon of type and $ per gallon of type The production manager is considering alternative production plans that lead to production quantities that fulfill the booked orders, and he is wondering which one to select.
a Write down the mathematical representation of the LP model at hand.
b Use Excel's Solver to find the optimal solution. The associated sensitivity report
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