Question: Riverside has orders for 3 0 0 , 0 0 0 barrels of regular and 4 5 0 , 0 0 0 barrels of supreme.

Riverside has orders for

300, 000

barrels of regular and

450, 000

barrels of supreme. How should the company allocate the available inputs to the production of regular and supreme gasoline to maximize profits? a

.

Create a spreadsheet model for this problem and solve it using Solver. b

.

What is the highest possible octane rating for regular gasoline, assuming the company wants to maximize its profits? What is the octane rating for supreme gasoline at this solution? c

.

What is the highest possible octane rating for supreme gasoline, assuming the company wants to maximize its profits? What is the octane rating for regular gasoline at this solution? d

.

Which of the two profit

-

maximizing solutions identified in parts b and c would you recommend the company implement? Why?

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