Three Types of Gasoline Are Manufactured by a Company -

question 8

Essay

Three types of gasoline are manufactured by a company - Regular, Super, and Extra.Regular should have at least 11 percent additive 1 and 17 percent additive 2.Super should have at least 13 percent additive 1 and 22 percent additive 2.Extra should have at least 17 percent additive 1 and 19 percent additive 2.These are made by using two crudes - A and B.Crude A cost $28 per barrel and is 14 percent additive 1 and 18 percent additive 2.Crude B costs $30 per barrel and is 20 percent additive 1 and 24 percent additive 2.The demand for Regular is projected to be 1,000 barrels, while each of the others has a demand of 2,000 barrels.Formulate this as a linear programming problem to minimize cost while meeting all constraints.Carefully define all decision variables.

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Definitions:

Production Process

The method and sequence of operations involved in the production of a good or service.

Demand for Products

The total amount of a product or service that consumers are willing and able to purchase at various prices during a specified period.

Resource Dependency

A theory highlighting how the external resources that organizations need to survive and thrive affect their behavior and strategies.

Price of Resource

The cost associated with acquiring a resource that is necessary for production.