H1 = amount of heavy crude used for Gas 1 (in barrels) H2 = amount of heavy crude used for Gas 2 (in barrels) L1 = amount of light crude used for Gas 1 (in barrels) %3D L2 = amount of light crude used for Gas 2 (in barrels) Formulate the LP model for this problem:(DO NOT SOLVE THE MODEL) %3D

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Enbridge Inc. uses two types of crude oil (heavy and light) to make two types of gas (Gas 1 and
Gas 2). We know that one barrel of crude results in one barrel of gas.
- Gas 1 sells for $62/barrel, whereas Gas 2 sells for $72/barrel.
- The cost per barrel of each crude, their availability, and the level of impurities in each crude
are listed below:
Light crude
oil
Heavy crude
oil
Cost per barrel
Availability (barrels)
Impurity percentage
$56
$65
6,000
7,000
10%
2%
- Up to 4,200 barrels of Gas 1 can be sold; no more than 65% of all gas that is produced can be
Gas 2.
- Gas 1 can contain up to 4% impurities and Gas 2 can contain up to 3% impurities.
Use the following decision variables to formulate the linear programming model that maximizes
their profit:
H1 = amount of heavy crude used for Gas 1 (in barrels)
H2 = amount of heavy crude used for Gas 2 (in barrels)
L1 = amount of light crude used for Gas 1 (in barrels)
L2 = amount of light crude used for Gas 2 (in barrels)
Formulate the LP model for this problem:(DO NOT SOLVE THE MODEL)
Transcribed Image Text:Enbridge Inc. uses two types of crude oil (heavy and light) to make two types of gas (Gas 1 and Gas 2). We know that one barrel of crude results in one barrel of gas. - Gas 1 sells for $62/barrel, whereas Gas 2 sells for $72/barrel. - The cost per barrel of each crude, their availability, and the level of impurities in each crude are listed below: Light crude oil Heavy crude oil Cost per barrel Availability (barrels) Impurity percentage $56 $65 6,000 7,000 10% 2% - Up to 4,200 barrels of Gas 1 can be sold; no more than 65% of all gas that is produced can be Gas 2. - Gas 1 can contain up to 4% impurities and Gas 2 can contain up to 3% impurities. Use the following decision variables to formulate the linear programming model that maximizes their profit: H1 = amount of heavy crude used for Gas 1 (in barrels) H2 = amount of heavy crude used for Gas 2 (in barrels) L1 = amount of light crude used for Gas 1 (in barrels) L2 = amount of light crude used for Gas 2 (in barrels) Formulate the LP model for this problem:(DO NOT SOLVE THE MODEL)
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