Problem

Sunco processes oil into aviation fuel and heating oil. It costs $40 to purchase each 1,00...

Sunco processes oil into aviation fuel and heating oil. It costs $40 to purchase each 1,000 barrels of oil. which is then distilled and yields 500 barrels of aviation fuel and 500 barrels of heating oil Output from the distillation may be sold directly or processed in the catalytic cracker. If sold after distillation without further processing, aviation fuel sells for $60 per 1,000 barrels, and heating oil sells for $40 per 1,000 barrels. It takes 1 hour to process 1,000 barrels of aviation fuel in the catalytic cracker, and these 1,000 barrels can be sold for $130. It takes 45 minutes to process 1,000 barrels of heating oil in the cracker, and these 1,000 barrels can be sold for $90. Each day, at most 20,000 barrels of oil can be purchased, and 8 hours of cracker time are available. Formulate an LP to maximize Sunco’s profits.

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