- Question 2 Supposing Petromin Png Owned Company Owns Two Small Oil Refineries Refinery 1 Costs K20 000 Per Day To Op 1 (56.02 KiB) Viewed 12 times
QUESTION 2 Supposing Petromin (PNG owned
company), owns two small oil refineries. Refinery 1 costs K20,000 per day to operate, and it can produce 400 barrels of high-grade oil, 300 barrels of medium-grade oil, and 200 barrels of low-grade oil each day. Refinery 2 is newer and more modern. It costs K25, 000 per day to operate, and it can produce 300 barrels of high-grade oil, 400 barrels of medium-grade oil, and 500 barrels of low-grade oil each day. The
company has orders totaling 25,000 barrels of high-grade oil, 27,000 barrels of medium- grade oil, and 30,000 barrels of low-grade oil. Using EXCEL, employ the techniques of Linear programming (LP) to determine how many days should the
company run each refinery to minimize its costs and still refine enough oil to meet its orders?