Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Clampett Oil purchases crude oil products from suppliers in Texas ( ( TX ) , ) , Oklahoma ( ( OK ) , ) ,
Clampett Oil purchases crude oil products from suppliers in Texas TX Oklahoma OK Pennsylvania PA and Alabama AL from which it refines four endproducts: gasoline, kerosene, heating oil, and asphalt. Because of differences in the quality and chemical characteristics of the oil from the different suppliers, the amount of each endproduct that can be refined from a barrel of crude oil varies depending on the source of the crude. Additionally, the amount of crude available from each source varies, as does the cost of a barrel of crude from each supplier. These values are summarized in the following table. For example, the first line of this table indicates that a barrel of crude oil from Texas can be refined into barrels of gasoline, barrels of kerosene, barrels of heating oil, or barrels of asphalt. Each supplier requires a minimum purchase of at least barrels.
Raw Material Characteristics
Possible Production per Barrel
Crude Oils Barrels Available Gas Kero. Heat Asphalt Cost per Barrel Trucking Cost
TX $ $
OK $ $
PA $ $
AL $ $
The company owns a tanker truck that picks up whatever crude oil it purchases. This truck can hold barrels of crude. The cost of sending the truck to pick up oil from the various locations is shown in the column labeled Trucking Cost. The company's plans for its next production cycle specify barrels of gasoline, barrels of kerosene, barrels of heating oil, and barrels of asphalt to be produced. determine the purchasing plan that will allow the company to implement its production plan at the least cost.
bImplement this model in a spreadsheet and solve it
cWhat is the optimal solution?
Parts bc in a single excel worksheet
The Production per Barrel should be barrels required to produce a single barrel of output. For example, it take barrels of TX crude to make barrel of Gas
Step by Step Solution
There are 3 Steps involved in it
Step: 1
This question involves formulating and solving an optimization problem using Excel Lets break down the steps to solve it Step 1 Set Up the Problem You ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started