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chandler Oil has 5000 barrels of crude oil 1 and 10,000 barrels of crude oil 2...

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Question

Statistics

chandler Oil has 5000 barrels of crude oil 1 and 10,000 barrelsof crude oil 2 available. Chandler sells gasoline and heating oil.These products are produced by blending the two crude oilstogether. Each barrel of crude oil 1 has a quality level of 10 andeach barrel of crude oil 2 has a quality level of 5.6 Gasoline musthave an average quality level of at least 8, whereas heating oilmust have an average quality level of at least 6. Gasoline sellsfor $75 per barrel, and heating oil sells for $60 per barrel. Inaddition, if any barrels of the crude oils are leftover, they canbe sold for $65 and $50 per barrel, respectively. (This opionwasn’t part of the model before the fifth edition of the book.) Weassume that demand for heating oil and gasoline is unlimited, sothat all of Chandler’s production can be sold. Chandler wants tomaximize its revenue from selling gasoline, heating oil, and anyleftover crude oils.

Objective:

To develop an LP spreadsheet model for finding therevenue-maximizing plan that meets quality constraints and stayswithin limits on crude oil availabilities.

and Write an appropriate mathematical Model for thisproblem

Answer & Explanation Solved by verified expert
3.7 Ratings (640 Votes)
ANSWERThe above LPP is solved using Excel Solver as shown below    See Answer
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