(10 points) Victoria Oil Company (Vicoco) produces 2 types of unleaded gasoline (regular and pre- mium)...

 

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(10 points) Victoria Oil Company (Vicoco) produces 2 types of unleaded gasoline (regular and pre- mium) from 3 types of crudes (Pacific, Gulf, and Middle East). The current octane rating, the availability (in barrels), and the cost per barrel for a given production period are given in the fol- lowing table. Crude Pacific Gulf Middle East Octane 85 87 95 Availability (barrels) Cost ($/barrel) 14.28 15.12 19.74 3000 2000 8000 Table 5: Vicoco data For this period, Vicoco has contracts calling for a minimum of 200,000 gallons of regular and 100,000 gallons of premium gasoline, and it has a refining capacity of 400,000 total gallons. (A barrel is 42 gallons.) Vicoco sells regular gasoline to retailers for $0.52 and premium gasoline for $0.60 per gallon. To be classified as "regular," the refined gas must have an octane rating of 87 or more; premium must have an octane rating of 91 or more. Assume that the octane rating of any mixture is the weighted octane rating of its components. Formulate an LP and solve for the optimal amount of each crude to blend into each gasoline during this production period. (10 points) Victoria Oil Company (Vicoco) produces 2 types of unleaded gasoline (regular and pre- mium) from 3 types of crudes (Pacific, Gulf, and Middle East). The current octane rating, the availability (in barrels), and the cost per barrel for a given production period are given in the fol- lowing table. Crude Pacific Gulf Middle East Octane 85 87 95 Availability (barrels) Cost ($/barrel) 14.28 15.12 19.74 3000 2000 8000 Table 5: Vicoco data For this period, Vicoco has contracts calling for a minimum of 200,000 gallons of regular and 100,000 gallons of premium gasoline, and it has a refining capacity of 400,000 total gallons. (A barrel is 42 gallons.) Vicoco sells regular gasoline to retailers for $0.52 and premium gasoline for $0.60 per gallon. To be classified as "regular," the refined gas must have an octane rating of 87 or more; premium must have an octane rating of 91 or more. Assume that the octane rating of any mixture is the weighted octane rating of its components. Formulate an LP and solve for the optimal amount of each crude to blend into each gasoline during this production period.

Answer rating: 100% (QA)

Let R1 R2 R3 P1 P2 P3 denote the amount of Pacific Gulf Middle East crude oil used to produce regula... View the full answer