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3. Hoosier Gasoline Company, or HoosCo as they are known, produces two blends of gasoline, regular and premium, by mixing three different types of oil, indi- cated by Types 1, 2, and 3. Each type of oil comes in barrels and has its own costs and octane readings, which are given below. Type I Type 2 Type 3 Cost/Barrel $45 $35 $20 Octane Rating Regular gasoline Premium gasoline Regular gasoline 93 91 87 To produce each blend of gasoline, we must combine these oils so as to meet the following requirements. Premium gasoline Maximum Available 10,000 15,000 20,000 At least 25% Type 1 At least 35% Type 2 At most 30% Type 3 At least 30% Type 1 At least 45% Type 2 At most 20% Type 3 There are also sales prices, average octane rating requirements for the gasolines, and minimum requirements in production of each blend. Average Octane Rating Sales Price 89 91 $65 $75 Minimum Demand 15,000 barrels 12,500 barrels How much of each type of gasoline should be produced to satisfy all require- ments and maximize profits? Formulate an LP whose solution answers the above question.

3. Hoosier Gasoline Company, or HoosCo as they are known, produces two blends of gasoline, regular and premium, by mixing three different types of oil, indi- cated by Types 1, 2, and 3. Each type of oil comes in barrels and has its own costs and octane readings, which are given below. Type I Type 2 Type 3 Cost/Barrel $45 $35 $20 Octane Rating Regular gasoline Premium gasoline Regular gasoline 93 91 87 To produce each blend of gasoline, we must combine these oils so as to meet the following requirements. Premium gasoline Maximum Available 10,000 15,000 20,000 At least 25% Type 1 At least 35% Type 2 At most 30% Type 3 At least 30% Type 1 At least 45% Type 2 At most 20% Type 3 There are also sales prices, average octane rating requirements for the gasolines, and minimum requirements in production of each blend. Average Octane Rating Sales Price 89 91 $65 $75 Minimum Demand 15,000 barrels 12,500 barrels How much of each type of gasoline should be produced to satisfy all require- ments and maximize profits? Formulate an LP whose solution answers the above question.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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3. Hoosier Gasoline Company, or HoosCo as they are known, produces two blends of gasoline, regular and premium, by mixing three different types of oil, indi- cated by Types 1, 2, and 3. Each type of oil comes in barrels and has its own costs and octane readings, which are given below. Type I Type 2 Type 3 Cost/Barrel $45 $35 $20 Octane Rating Regular gasoline Premium gasoline Regular gasoline 93 91 87 To produce each blend of gasoline, we must combine these oils so as to meet the following requirements. Premium gasoline Maximum Available 10,000 15,000 20,000 At least 25% Type 1 At least 35% Type 2 At most 30% Type 3 At least 30% Type 1 At least 45% Type 2 At most 20% Type 3 There are also sales prices, average octane rating requirements for the gasolines, and minimum requirements in production of each blend. Average Octane Rating Sales Price 89 91 $65 $75 Minimum Demand 15,000 barrels 12,500 barrels How much of each type of gasoline should be produced to satisfy all require- ments and maximize profits? Formulate an LP whose solution answers the above question.
Transcribed Image Text:3. Hoosier Gasoline Company, or HoosCo as they are known, produces two blends of gasoline, regular and premium, by mixing three different types of oil, indi- cated by Types 1, 2, and 3. Each type of oil comes in barrels and has its own costs and octane readings, which are given below. Type I Type 2 Type 3 Cost/Barrel $45 $35 $20 Octane Rating Regular gasoline Premium gasoline Regular gasoline 93 91 87 To produce each blend of gasoline, we must combine these oils so as to meet the following requirements. Premium gasoline Maximum Available 10,000 15,000 20,000 At least 25% Type 1 At least 35% Type 2 At most 30% Type 3 At least 30% Type 1 At least 45% Type 2 At most 20% Type 3 There are also sales prices, average octane rating requirements for the gasolines, and minimum requirements in production of each blend. Average Octane Rating Sales Price 89 91 $65 $75 Minimum Demand 15,000 barrels 12,500 barrels How much of each type of gasoline should be produced to satisfy all require- ments and maximize profits? Formulate an LP whose solution answers the above question.
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