4 Sunco processes oil into aviation fuel and heating oil. Itcosts $40 to purchase each 1,000 barrels of oil, which isthen distilled and yields 500 barrels of aviation fuel and 500barrels of heating oil. Output from the distillation may besold directly or processed in the catalytic cracker. If soldafter distillation without further processing, aviation fuelsells for $60 per 1,000 barrels, and heating oil sells for $40per 1,000 barrels. It takes 1 hour to process 1,000 barrels ofaviation fuel in the catalytic cracker, and these 1,000 barrelscan be sold for $130. It takes 45 minutes to process 1,000barrels of heating oil in the cracker, and these 1,000 barrelscan be sold for $90. Each day, at most 20,000 barrels of oilcan be purchased, and 8 hours of cracker time are available.Formulate an LP to maximize Sunco’s profits.
4 Sunco processes oil into aviation fuel and heating oil. It
costs $40 to purchase each 1,000 barrels of oil, which is
then distilled and yields 500 barrels of aviation fuel and 500
barrels of heating oil. Output from the distillation may be
sold directly or processed in the catalytic cracker. If sold
after distillation without further processing, aviation fuel
sells for $60 per 1,000 barrels, and heating oil sells for $40
per 1,000 barrels. It takes 1 hour to process 1,000 barrels of
aviation fuel in the catalytic cracker, and these 1,000 barrels
can be sold for $130. It takes 45 minutes to process 1,000
barrels of heating oil in the cracker, and these 1,000 barrels
can be sold for $90. Each day, at most 20,000 barrels of oil
can be purchased, and 8 hours of cracker time are available.
Formulate an LP to maximize Sunco’s profits.
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