a production company that sells two types of gasoline, G1 and G2, from two types of crude oil, C1 and C2. Parmar prides itself in producing signature gasoline. As such, G1 is allowed to contain up to 6% impurities, and G2 is allowed to contain up to 4.5% impurities. G1 sells for $62 per barrel, whereas G2 sells for $76 per barrel. Up to 4200 barrels of G1 and up to 4500 barrels of G2 can be sold. The cost per barrel of each crude, their availability, and the level of impurities in each crude are listed in the table below. Before blending the crude oil into gas, any amount of each crude can be “purified” for a cost of $4.50 per barrel. Purification eliminates half of the impurities in the crude oil. Someone has hired you to solve this problem to determine how they can maximize profit.
a production company that sells two types
of gasoline, G1 and G2, from two types of crude oil, C1 and C2. Parmar prides itself in producing
signature gasoline. As such, G1 is allowed to contain up to 6% impurities, and G2 is allowed to contain
up to 4.5% impurities. G1 sells for $62 per barrel, whereas G2 sells for $76 per barrel. Up to 4200
barrels of G1 and up to 4500 barrels of G2 can be sold. The cost per barrel of each crude, their
availability, and the level of impurities in each crude are listed in the table below.
Before blending the crude oil into gas, any amount of each crude can be “purified” for a cost of $4.50
per barrel. Purification eliminates half of the impurities in the crude oil. Someone has hired you to solve
this problem to determine how they can maximize profit.
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