Posted by **Annie** on Monday, March 18, 2013 at 11:01am.

Riverside oil company in eastern Kentucky produces 3 different grades of gasoline. They are regular, premium, and supreme grades. Each barrel of regular grade sells for $82 while premium grade sells for $88 per barrel and supreme grade sells for $89 per barrel. Petroleum component A, B, and C are purchased to be blended together for the production of three different grades of gasoline. The availability and cost of petroleum components A, B, and C are given in the following table.

Petroleum Component

Barrels available

Cost per Barrel

A

10000

$32

B

12000

$45

C

15000

$39

Also, the blending specifications for these three grades of gasoline are as follows:

Product

Blending Specification

Regular

at least 25% of A; no more than 30% of B; no restriction on C

Premium

at least 35% of B; no restriction on A and C

Supreme

no more than 25% of A; no restriction on B; at least 50% on C

Our goal is to maximize the profit from this production process.

a.List the linear program for this problem.

b.Use "Management Scientist" software to solve the program and report your optimal way to blend these three petroleum components for production.

c.What is the maximized profit?

Use Only a WORD file as attachment to submit your assignment. Only one attachment file (a WORD file) can be submitted for grading. You do NOT need to send in your working file from the software "Management Scientist".

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