Question: Solve this minimization problem by simplex method. (step-by-step please, thank you so much) A small petroleum company owns two refineries. Refinery 1 costs $25,000 per
Solve this minimization problem by simplex method. (step-by-step please, thank you so much)
A small petroleum company owns two refineries. Refinery 1 costs $25,000 per day to operate, and it can produce 300 barrels of high-grade oil, 200 barrels of medium-grade oil, and 150 barrels of low-grade oil each day. Refinery 2 is newer and more modern. It costs $30,000 per day to operate, and it can produce 300 barrels of high-grade oil, 250 barrels of medium-grade oil, and 400 barrels of low-grade oil each day. The company has orders totaling 5,000 barrels of high-grade oil, 30,000 barrels of medium-grade oil, and 40,000 barrels of low-grade oil. How many days should the company run each refinery to minimize its costs and still meet its orders?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
