Question: A Petroleum company is blending three different components (Component 1, Component 2, and Component 3) to make three different grades of fuel (Super Grade, Medium

A Petroleum company is blending three different

A Petroleum company is blending three different components (Component 1, Component 2, and Component 3) to make three different grades of fuel (Super Grade, Medium Grade, and Plus Grade). Component 1 costs $28.00 per barrel to purchase. Component 2 costs $24.50 per barrel to purchase. Component 3 costs $31.00 per barrel to purchase. Super Grade sells for $78.00 per barrel. Medium Grade sells for $72.00 per barrel. Plus Grade sells for $64.00 per barrel. Below are the constraints for the Super Grade fuel blend. Constraint 1 -> There is 4,500 barrels of Component 1 available for blending. Constraint 2 -> There is 4,800 barrels of Component 2 available for blending. Constraint 3 -> There is 4,200 barrels of Component 3 available for blending. Constraint 4 -> You must produce at least 4,000 barrels of each blend. Constraint 5 -> The Super Grade blend cannot contain more than 35% of Component 1. Constraint 6 -> The Super Grade blend cannot contain more than 25% of Component 3. Constraint 7 -> The Medium Grade blend must contain at least 35% of Component 1. Constraint 8 -> The Medium Grade blend must contain at least 20% of Component 3. Constraint 9 -> The Plus Grade blend must contain at least 35% of Component 1. Constraint 10 -> The Plus Grade blend cannot contain more than 45% of Component 2 and Component 3 combined. Constraint 11 -> All decision variables must be non-negative How many Decision Variables are there

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!