Computing the maximized profit

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Reference no: EM13104510

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.

List the linear program for this problem.
Use "LINGO" software to solve the program and report your optimal way to blend these three petroleum components for production.
What is the maximized profit?

Reference no: EM13104510

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