E&E Refinery produces 3 types of gasoline: standard, midgrade, and premium by distilling from crude oil. Distilling 1 li

[answerhappygod]

E&E Refinery produces 3 types of gasoline: standard,
midgrade, and premium by distilling from crude oil. Distilling 1
liter of crude oil can generate 0.5 liter of standard gasoline and
0.3 liter of midgrade gasoline. One liter of standard gasoline can
be further processed into 1 liter of premium gasoline. The
distillation of 1 liter of crude oil requires 1 machine hour and
the cost of purchasing 1 liter of crude oil is 2 dollars ($2). It
takes 3 additional machine hours and $2 to process 1 liter of
standard gasoline into 1 liter of premium gasoline. Standard
gasoline can be sold at the price of $4 per liter and midgrade
gasoline can be sold at the price of $6 per liter. The price for
premium gasoline is $10 per liter. Each week, E&E Refinery has
4,000 machine hours available and can purchase up to 3,000 liter of
crude oil. The goal is to maximize the weekly profit. a) Formulate
a math model for the problem using the following decision variables
defined: XC denote the number of liters of crude oil used per week,
XS denote the number of liters of standard gasoline produced per
week after deducting the amount used to produce premium gasoline,
XM denote the number of liters of midgrade gasoline produced per
week, and XP denote the number of liters of premium gasoline
produced per week b) Use Excel solver to obtain the optimal
solution for this problem and the maximum profit. XC = ?. XS = ?.
XM = ?. XP = ? c) The company has two options for procuring extra
resources. Option 1 is to buy at least 1,500 liters of crude oil at
$500 from another supplier. Option 2 is to rent a new machine which
will provide additional 3,500 machine hours at a weekly cost of
$4,500. Which option is better for the company? Please explain your
reasons for your option. ** May I ask how do I use excel to do
this? ** I'd like to know how to construct the tables in excel.