Bay Oil produces two types of fuel (regular and super) by mixing three ingredients. The major distinguishing feature of

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Bay Oil Produces Two Types Of Fuel Regular And Super By Mixing Three Ingredients The Major Distinguishing Feature Of 1 (50.57 KiB) Viewed 51 times

Bay Oil produces two types of fuel (regular and super) by mixing three ingredients. The major distinguishing feature of the two products is the octane level required. Regular fuel must have a minimum octane level of 90, whereas super must have a level of at least 100. The cost per barrel, octane levels, and available amounts (in barrels) for the upcoming two-week period appear in the following table, along with the maximum demand for each end product and the revenue generated per barrel. Ingredient Cost/Barrel Octane Available (barrels) 1 $16.50 100 200,000 2 $14.00 87 440,000 3 $17.50 110 390,000 Revenue/Barrel Max Demand (barrels) Regular $18.50 440,000 Super $20.00 590,000 Develop and solve a linear programming model to maximize contribution to profit. (Assume R, is the amount of ingredient i used in producing regular, and S, is the amount of ingredient i used in producing Super. Use the units of barrels and dollars for all answers.) Max s.t. Input 1 Capacity Input 2 Capacity Input 3 Capacity Max Demand for Regular Max Demand for Super Required Octane Level, Regular Required Octane Level, Super R₁, R₂1 R₂1 S₁ S₂, S3 20 What is the optimal contribution to profit? Report your values for R₁ R₂ R3 S₁ S₂, S3. (R₁, R₁, R², S₁, S₂, S3) = ( [ What is the maximum profit (in dollars)? $