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Problem No. 7 - Blending (1/3) Bharat oil manufactures three grades of gasoline (Regular, Premium, Super). Each grade is produced by blending three types
Problem No. 7 - Blending (1/3) Bharat oil manufactures three grades of gasoline (Regular, Premium, Super). Each grade is produced by blending three types of crude oil. Purchase price Sales price Maximum per barrel per barrel demand/day Crude 1 $45 Super $70 1500 Crude 2 $35 Premium $60 3000 Regular $50 2500 Crude 3 $25 Availability of crude oil is limited to 5000 barrels of each type of crude oil per day. Problem No. 7 - Blending (2/3) The three types of gasoline differ in their octane rating and sulphur content as follows: Product Specifications Super Average Octane rating of at least 10 At most 1% Sulphur Premium Average Octane rating of at least 8 At most 2% Sulphur Regular Average Octane rating of at least 6 At most 2.5% Sulphur Problem No. 7 - Blending (3/3) The octane rating and the sulphur content of the three types of crude oil are as follows: Octane Rating Crude Oil 1 12 Crude Oil 2 6 Crude Oil 3 8 Sulphur content 0.5% 2.0% 3.0% Refining cost is $4 per barrel of gasoline and the refinery can produce up to 14,000 barrels of gasoline daily. Formulate an LP that will enable Bharat Oil to maximize its daily profits
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