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
we want to maximize revenue and minimize cost hence
we heve to maximize
18.5(R1+R2+R3) + 20(S1+S2+S3)-16.5(R1+S1)-14(R2 +S2)-17.5(R3+S3)
= 2 R1 +4.5 R2 + R3 + 3.5 S1 + 6 S2 + 2.5 S3
using all constraints
Bay Oil produces two types of fuels (regular and super) by mixing three ingredients.
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...
Problem 9-15 (Algorithmic) 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 92 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...
Problem 9-15 (Algorithmic) 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 92 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...
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