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Assume the maximum demand for Super is 600,000 barrels. What is the optimal maximum profit?   Hints:  There are six decision variables are as follows:  R1: # of barrels of ingredient 1 used in Regular fuel R2: # of barrels of ingredient 2 used in Regular fuel R3: # of barrels of ingredient 3 used in Regular fuel S1: # of barrels of ingredient 1 used in Super fuel S2: # of barrels of ingredient 2 used in Super fuel S3: # of barrels of ingredient 3 used in Super fuel   Some calculations you would need in the constraints: The total # of barrels for Regular would be R1+R2+R3. The total # of barrels for Super would be S1+S2+S3. The total # of barrels of Ingredient 1 would be R1+S1. The total # of barrels of Ingredient 2 would be R2+S2. The total # of barrels of Ingredient 3 would be R3+S3.

Assume the maximum demand for Super is 600,000 barrels. What is the optimal maximum profit?   Hints:  There are six decision variables are as follows:  R1: # of barrels of ingredient 1 used in Regular fuel R2: # of barrels of ingredient 2 used in Regular fuel R3: # of barrels of ingredient 3 used in Regular fuel S1: # of barrels of ingredient 1 used in Super fuel S2: # of barrels of ingredient 2 used in Super fuel S3: # of barrels of ingredient 3 used in Super fuel   Some calculations you would need in the constraints: The total # of barrels for Regular would be R1+R2+R3. The total # of barrels for Super would be S1+S2+S3. The total # of barrels of Ingredient 1 would be R1+S1. The total # of barrels of Ingredient 2 would be R2+S2. The total # of barrels of Ingredient 3 would be R3+S3.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Assume the maximum demand for Super is 600,000 barrels.

What is the optimal maximum profit?

 

Hints: 

There are six decision variables are as follows: 

R1: # of barrels of ingredient 1 used in Regular fuel

R2: # of barrels of ingredient 2 used in Regular fuel

R3: # of barrels of ingredient 3 used in Regular fuel

S1: # of barrels of ingredient 1 used in Super fuel

S2: # of barrels of ingredient 2 used in Super fuel

S3: # of barrels of ingredient 3 used in Super fuel

 

Some calculations you would need in the constraints:

The total # of barrels for Regular would be R1+R2+R3.

The total # of barrels for Super would be S1+S2+S3.

The total # of barrels of Ingredient 1 would be R1+S1.

The total # of barrels of Ingredient 2 would be R2+S2.

The total # of barrels of Ingredient 3 would be R3+S3.

15. Fuel Production. Bay Oil produces two types of fuel (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, whereas 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 appear in the following table, along with the maximum demand for each end product and the revenue generated per barrel: Ingredient 1 2 3 Regular Super Cost/Barrel $16.50 $14.00 $17.50 Revenue/Barrel $18.50 Octane $20.00 100 87 110 Available (barrels) 110,000 350,000 300,000 Max Demand (barrels) 350,000 500,000 Develop and solve a linear programming model to maximize contribution to profit. What is the optimal contribution to profit?
Transcribed Image Text:15. Fuel Production. Bay Oil produces two types of fuel (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, whereas 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 appear in the following table, along with the maximum demand for each end product and the revenue generated per barrel: Ingredient 1 2 3 Regular Super Cost/Barrel $16.50 $14.00 $17.50 Revenue/Barrel $18.50 Octane $20.00 100 87 110 Available (barrels) 110,000 350,000 300,000 Max Demand (barrels) 350,000 500,000 Develop and solve a linear programming model to maximize contribution to profit. What is the optimal contribution to profit?
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