Question

Bay Oil produces two types of fuels (regular and super) by mixing three ingredients. The major distinguishing feature of the two products is the octane level required. Regular fuel must have a minimum octane level of 90 while super must have a level of at least 100. The cost per barrel, octane levels, and available amounts (in barrels) for the upcoming two-week period are shown in the following table. Likewise, the maximum demand for each end product and the revenue generated per barrel are shown.

Input	Cost/Barrel	Octane	Available (barrels)
1	16.5	100	110,000
2	14	87	350,000
3	17.5	110	300,000

	Revenue/Barrel	Max Demand (barrels)
Regular	18.5	350,000
Super	20	500,000

Develop and solve a linear programming model to maximize contribution to profit

Let Ri = the number of barrels of input i to use to produce Regular, i=1,2,3 Si = the number of barrels of input i use to produce Super, i=1,2,3 What is the optimal contribution to profit? Max profit = $___ by making ___ barrels of regular ___ and ___ barrels of Super

Answer 1