An Oil Company Controls Two Oil Fields

question 4

Essay

An oil company controls two oil fields. Field 1 can produce up to 45 million barrels of oil per day, and Field 2 can produce up to 55 million barrels of oil per day. At Field 1, it costs $3 to extract and refine a barrel of oil; at Field 2, the cost is $2. The company sells oil to two countries: France and Japan. The shipping costs per barrel are shown below. Each day, France is willing to buy up to 45 million barrels (at $6 per barrel), and Japan is willing to buy up to 35 million barrels (at $6.50 per barrel). Determine how to maximize the company's profit.

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Definitions:

Payroll Companies

Businesses that specialize in managing the compensation of employees for other companies, including wages, taxes, and other deductions.

New Buy

A purchasing situation in which a buyer or company makes a significant purchase of a product or service for the first time, often involving considerable research and decision-making.

T.J.Maxx

A subsidiary of TJX Companies, Inc., known for selling discounted brand-name clothing, footwear, and home goods.

B2B Organization

A business that primarily sells products or services to other businesses rather than to individual consumers.