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 least 100. The cost per barrel, octane levels and available amounts (in barrels) for the upcoming two-week period appear in the table below. Likewise, the maximum demand for each end product and the revenue generated per barrel are shown below. Ingredient 1 2 3 Max s.t. Cost/Barrel $16.50 $14.00 $17.50 Revenue/Barrel Max Demand (barrels) Regular $18.50 350,000 500,000 Super $20.00 Develop and solve a linear programming model to maximize contribution to profit. Let R, the number of barrels of input/ to use to produce Regular, / 1, 2, 3 Si= the number of barrels of input/ to use to produce Super, / 1, 2, 3 If required, round your answers to one decimal place. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) If the constant is "1" it must be entered in the box. R₁ + Octane Available (barrels) 100 87 110 R₁ 110,000 350,000 300,000 R₁ + R₂ + R₂ + R2 + R3+ R3 R3 S1 + S1 52 + S2 53 S S S3 S S 15₂ SI

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 least 100. The cost per barrel, octane levels and available amounts (in barrels) for the upcoming two-week period appear in the table below. Likewise, the maximum demand for each end product and the revenue generated per barrel are shown below. Ingredient 1 2 3 Max s.t. Cost/Barrel $16.50 $14.00 $17.50 Revenue/Barrel Max Demand (barrels) Regular $18.50 350,000 500,000 Super $20.00 Develop and solve a linear programming model to maximize contribution to profit. Let R, the number of barrels of input/ to use to produce Regular, / 1, 2, 3 Si= the number of barrels of input/ to use to produce Super, / 1, 2, 3 If required, round your answers to one decimal place. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) If the constant is "1" it must be entered in the box. R₁ + Octane Available (barrels) 100 87 110 R₁ 110,000 350,000 300,000 R₁ + R₂ + R₂ + R2 + R3+ R3 R3 S1 + S1 52 + S2 53 S S S3 S S 15₂ SI

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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