Exercise 1.16 A manager of an oil refinery has 8 million barrels of crude oil A and 5 million barrels of crude oil B allocated for production during the coming month. These resources can be used to make either gasoline, which sells for $38 per barrel, or home heating oil, which sells for $33 per barrel. There are three production processes with the following characteristics: Input crude A Input crude B Output gasoline Output heating oil Cost Process 1 3 5 4 3 $51 Process 2 1 1 1 1 $11 Process 3 5 3 3 4 $40 All quantities are in barrels. For example, with the first process, 3 barrels of crude A and 5 barrels of crude B are used to produce 4 barrels of gasoline and

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...
icon
Related questions
Question

Please correct woth explanation and dont do handwritten please!!. Please if doing by excel write down the steps and also post output snips i will definitely like.

Exercise 1.16 A manager of an oil refinery has 8 million barrels of crude oil A
and 5 million barrels of crude oil B allocated for production during the coming
month. These resources can be used to make either gasoline, which sells for $38
per barrel, or home heating oil, which sells for $33 per barrel. There are three
production processes with the following characteristics:
Input crude A
Input crude B
Output gasoline
Output ating oil
Cost
Process 1 Process 2
3
1
5
4
3
$51
1
1
1
$11
Process 3
5
3
3
4
$40
All quantities are in barrels. For example, with the first process, 3 barrels of
crude A and 5 barrels of crude B are used to produce 4 barrels of gasoline and
Transcribed Image Text:Exercise 1.16 A manager of an oil refinery has 8 million barrels of crude oil A and 5 million barrels of crude oil B allocated for production during the coming month. These resources can be used to make either gasoline, which sells for $38 per barrel, or home heating oil, which sells for $33 per barrel. There are three production processes with the following characteristics: Input crude A Input crude B Output gasoline Output ating oil Cost Process 1 Process 2 3 1 5 4 3 $51 1 1 1 $11 Process 3 5 3 3 4 $40 All quantities are in barrels. For example, with the first process, 3 barrels of crude A and 5 barrels of crude B are used to produce 4 barrels of gasoline and
3 barrels of heating oil. The costs in this table refer to variable and allocated
overhead costs, and there are no separate cost items for the cost of the crudes.
Formulate a linear programming problem that would help the manager maximize
net revenue over the next month.
Transcribed Image Text:3 barrels of heating oil. The costs in this table refer to variable and allocated overhead costs, and there are no separate cost items for the cost of the crudes. Formulate a linear programming problem that would help the manager maximize net revenue over the next month.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.