Homework Help is Here – Start Your Trial Now!
Math
Statistics
Assume the maximum demand for Super is 600,000 barrels. What is the optimal maximum profit?   Hints:  There are six decision variables are as follows:  R1: # of barrels of ingredient 1 used in Regular fuel R2: # of barrels of ingredient 2 used in Regular fuel R3: # of barrels of ingredient 3 used in Regular fuel S1: # of barrels of ingredient 1 used in Super fuel S2: # of barrels of ingredient 2 used in Super fuel

Assume the maximum demand for Super is 600,000 barrels. What is the optimal maximum profit?   Hints:  There are six decision variables are as follows:  R1: # of barrels of ingredient 1 used in Regular fuel R2: # of barrels of ingredient 2 used in Regular fuel R3: # of barrels of ingredient 3 used in Regular fuel S1: # of barrels of ingredient 1 used in Super fuel S2: # of barrels of ingredient 2 used in Super fuel

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 23EQ: 23. Consider a simple economy with just two industries: farming and manufacturing. Farming consumes...
See similar textbooks
icon
Related questions
Question

Assume the maximum demand for Super is 600,000 barrels.

What is the optimal maximum profit?

 

Hints: 

There are six decision variables are as follows: 

R1: # of barrels of ingredient 1 used in Regular fuel

R2: # of barrels of ingredient 2 used in Regular fuel

R3: # of barrels of ingredient 3 used in Regular fuel

S1: # of barrels of ingredient 1 used in Super fuel

S2: # of barrels of ingredient 2 used in Super fuel

S3: # of barrels of ingredient 3 used in Super fuel

 

Some calculations you would need in the constraints:

The total # of barrels for Regular would be R1+R2+R3.

The total # of barrels for Super would be S1+S2+S3.

The total # of barrels of Ingredient 1 would be R1+S1.

The total # of barrels of Ingredient 2 would be R2+S2.

The total # of barrels of Ingredient 3 would be R3+S3.

Fuel Production. 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 $16.50 100 110,000 $14.00 87 350,000 3 $17.50 110 300,000 Revenue/Barrel Max Demand (barrels) Regular $18.50 350,000 Super $20.00 500,000
Transcribed Image Text:Fuel Production. 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 $16.50 100 110,000 $14.00 87 350,000 3 $17.50 110 300,000 Revenue/Barrel Max Demand (barrels) Regular $18.50 350,000 Super $20.00 500,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer