LP to maximize the daily profit of Ole:

Assume the following,

Let “Ho” be the barrels of heating oil sold.

Let “Gs” be the barrels of gasoline sold.

Let “Jt” be the barrels of jet fuel sold.

Let “Cr1” be the barrels of crude “1” bought.

Let “Cr2” be the barrels of crude “2” bought.

Let “Ho1” be the barrels of distilled crude “1” utilized for heating oil.

Let “Ho2” be the barrels of distilled crude “2” utilized for heating oil.

Let “Ng” be the barrels of naptha utilized for jet fuel.

Let “Nj” be the barrels of naptha utilized for gasoline.

Let “Do1” be the barrels of distilled crude “1” sent via cracker.

Let “Do2” be the barrels of distilled crude “2” sent via cracker.

Let “C1g” be the barrels of cracked oil “1” utilized for gasoline.

Let “C2g” be the barrels of cracked oil “2” utilized for gasoline.

Let “C1j” be the barrels of cracked oil “1” utilized for jet fuel.

Let “C2j” be the barrels of cracked oil “2” utilized for jet fuel.

The correct Linear Programming (LP) formulation is as follows,

max z=14Ho+18Gs+16Jt−12.1Cr1−10.1Cr2−0.15Do1−0.15Do2

S.T.Cr1≤10000Cr2≤100000

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Solution Summary: The author explains the correct Linear Programming (LP) formulation to maximize the daily profit of Ole.

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