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Safety-Kleen operates the world's largest oil refinery at Elgin, Illinois. You have been hired by the company to determine how to allocate its intake of up to 60 million gallons of used oil to its three refinery processes: A, B, and C. You are told that electricity costs for process A amount to $150,000 per million gallons treated, while for processes B and C, the costs are respectively $100,000 and $50,000 per million gallons treated. Process A can

Safety-Kleen operates the world's largest oil refinery at Elgin, Illinois. You have been hired by the company to determine how to allocate its intake of up to 60 million gallons of used oil to its three refinery processes: A, B, and C. You are told that electricity costs for process A amount to $150,000 per million gallons treated, while for processes B and C, the costs are respectively $100,000 and $50,000 per million gallons treated. Process A can

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter9: Systems Of Equations And Inequalities
Section9.4: Linear Programming
Problem 21E
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Safety-Kleen operates the world's largest oil refinery at Elgin, Illinois. You have been hired by the company to determine how to allocate its intake of up to 60 million gallons of used oil to its three refinery processes: A, B, and C. You are told that electricity costs for process A amount to $150,000 per million gallons treated, while for processes B and C, the costs are respectively $100,000 and $50,000 per million gallons treated. Process A can recover 60 percent of the used oil, process B can recover 55 percent, and process C can recover only 50 percent. Assuming a revenue of $4 million per million gallons of recovered oil and an annual electrical budget of $3.6 million, how much used oil would you allocate to each process in order to maximize total revenues?
Transcribed Image Text:Safety-Kleen operates the world's largest oil refinery at Elgin, Illinois. You have been hired by the company to determine how to allocate its intake of up to 60 million gallons of used oil to its three refinery processes: A, B, and C. You are told that electricity costs for process A amount to $150,000 per million gallons treated, while for processes B and C, the costs are respectively $100,000 and $50,000 per million gallons treated. Process A can recover 60 percent of the used oil, process B can recover 55 percent, and process C can recover only 50 percent. Assuming a revenue of $4 million per million gallons of recovered oil and an annual electrical budget of $3.6 million, how much used oil would you allocate to each process in order to maximize total revenues?
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