Question: Use excel solver to find the answer. Use the INDEX function in excel to set up the equation. Network super model question: The Amorco Oil
Use excel solver to find the answer. Use the INDEX function in excel to set up the equation. Network super model question:
The Amorco Oil Company controls two oil fields. Field 1 can produce up to 22 million barrels of oil per day, and field 2 can produce up to 19 million barrels of oil per day. At field 1, it costs $42.50 to extract and refine a barrel of oil; at field 2 the cost is $38.20. Amorco sells oil to two countries: United Kingdom and Japan. The shipping costs per barrel are shown in the file P05_48.xlsx. Each day, the United Kingdom is willing to buy up to 14 million barrels at $65.80 per barrel, and Japan is willing to buy up to 23 million barrels at $68.40 per barrel. Determine how to maximize Amorcos profit.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
