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Problem - A small petroleum company owns two refineries. Refinery 1 costs $25,000 per day to operate, and it can produce 300 barrels of high-grade oil, 200 barrels of medium-grade oil, and 150 barrels of low- grade oil each day. Refinery 2 is newer and more modern. It costs $30,000 per day to operate, and it can produce 300 barrels of high-grade oil, 250 barrels of medium-grade oil, and 400 barrels of low- grade oil each day. The company has orders totalling 35,000 barrels of high-grade oil, 30,000 barrels of medium-grade oil, and 40,000 barrels of low-grade oil.
(a) Determine the number of days the company should run each refinery to minimize its costs and still refine enough oil to meet its orders using three (3) different methods.
(b) Compare the least and most effective method and explain the reason for your choice.
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