Chapter 5.3, Problem 33E

Recycling Safety-Kleen operates the world’s largest oil re-refinery in Elgin, Illinois. You have been hired by the company to determine how 10 allocate its intake of up to 50 million gallons of used oil 10 its three refinery processes: A, B, and C. You are told that electricity costs for process A amount to 150,000 per million gallon treated, while for processes B and C, the costs are 100,000 and $50,000, respectively, per million gallons treated. Process A can recover 60% of the used oil, process B can recover 55%, and process C can recover only 50%. Assuming a revenue of $4 million per million gallons of recovered oil and an annual electrical budget of 3 million, how much used oil would you allocate to each process to maximize total revenues?²⁴