eastrand Oil Company produces two grades of gasoline: regular and high octane. Both gasolines are produced by blending two types of crude oil. Although both types of crude oil contain the two important ingredients required to produce both gasolines, the percentage of important ingredients in each type of crude oil differs, as does the cost per gallon. The percentage of ingredients A and B in each type of crude oil and the cost per gallon are shown. Crude Oil Cost Ingredient A Ingredient B 1 $0.15 40% 40% 2 $0.20 70% 10% Each gallon of regular gasoline must contain at least 60% of ingredient A, whereas each gallon of high octane can contain at most 30% of ingredient B. Daily demand for regular and high-octane gasoline is 900,000 and 500,000 gallons, respectively. How many gallons of each type of crude oil should be used in the two gasolines to satisfy daily demand at a minimum cost? Round your answers to the nearest whole number. Round the answers for cost to the nearest dollar.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Problem 4-15 (Algorithmic)
Seastrand Oil Company produces two grades of gasoline: regular and high octane. Both gasolines are produced by blending two types of crude oil. Although both types of crude oil contain the two important ingredients required to produce both gasolines, the percentage of important ingredients in each type of crude oil differs, as does the cost per gallon. The percentage of ingredients A and B in each type of crude oil and the cost per gallon are shown.
| Crude Oil | Cost | Ingredient A | Ingredient B |
| 1 | $0.15 | 40% | 40% |
| 2 | $0.20 | 70% | 10% |
Each gallon of regular gasoline must contain at least 60% of ingredient A, whereas each gallon of high octane can contain at most 30% of ingredient B. Daily demand for regular and high-octane gasoline is 900,000 and 500,000 gallons, respectively. How many gallons of each type of crude oil should be used in the two gasolines to satisfy daily demand at a minimum cost? Round your answers to the nearest whole number. Round the answers for cost to the nearest dollar.
| gallons of crude 1 used to produce regular | = | fill in the blank 1 |
| gallons of crude 1 used to produce high-octane | = | fill in the blank 2 |
| gallons of crude 2 used to produce regular | = | fill in the blank 3 |
| gallons of crude 2 used to produce high-octane | = | fill in the blank 4 |
| Cost | = | $ fill in the blank 5 |
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