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
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.
![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
Cost/Barrel
Octane
Available (barrels)
1
$16.50
100
110,000
$14.00
87
350,000
3
$17.50
110
300,000
Revenue/Barrel
Max Demand (barrels)
Regular
$18.50
350,000
Super
$20.00
500,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F813fba3e-979a-41d1-a6b5-fbc7fbde17db%2F47a51a6f-78d5-4157-a588-7106b648d10c%2Frpp30jq_processed.png&w=3840&q=75)
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