Question: Problem Three: Minimization A small petroleum company owns two refineries. Refinery 1 costs $20,000 per day to operate, and it can produce 400 barrels of

Problem Three: Minimization

A small petroleum company owns two refineries. Refinery 1 costs $20,000 per day to operate, and it can produce 400 barrels of high-grade oil, 300 barrels of medium-grade oil, and 200 barrels of low-grade oil each day. Refinery 2 is newer and more modern. It costs $25,000 per day to operate, and it can produce 300 barrels of high-grade oil, 400 barrels of medium-grade oil, and 500 barrels of low-grade oil each day.

The company has orders totaling 25,000 barrels of high-grade oil, 27,000 barrels of medium-grade oil, and 30,000 barrels of low-grade oil. How many days should it run each refinery to minimize its costs and still refine enough oil to meet its orders?

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