Solve an LP to help Chandler maximize profit

Reference no: EM131799192

Question: Chandler Oil Company has 5000 barrels of oil 1 and 10000 barrels of oil 2. The company sells two products: gasoline and heating oil. Both products are produced by blending oil 1 and oil 2. The quality level of each oil is as follows: 10 for oil 1; 5 for oil 2. Gasoline must have an average quality level of at least 8, and heating oil at least 6.

Demand for each product must be created by advertising. Each dollar spent advertising gasoline creates 5 barrels of demand and each dollar spent on heating oil creates 10 barrels of demand. Gasoline is sold for $25 per barrel, heating oil for $20. Formulate and solve an LP to help Chandler maximize profit. Assume that no oil of either type can be purchased. Please also clearly define the decision variables.

Reference no: EM131799192

Questions Cloud

Prepare a bank reconciliation for del gato clinic : Prepare a bank reconciliation for Del Gato Clinic using the above information

Calculate at what price should big al sell the frozen pizzas : Calculate at what price should Big Al sell the frozen pizzas to Big Al's Emporium? Comment as to whether Big Al should sell the pizzas to Big Al's

Elements used in a description list : What are the three, HTML elements used in a description list?

Describe the range of testing that is allowed in workplace : Describe the range of testing that is allowed in the workplace. What are some of the limitations of workplace testing?

Solve an LP to help Chandler maximize profit : Demand for each product must be created by advertising. Each dollar spent advertising gasoline creates 5 barrels of demand and each dollar spent on heating oil.

Determine the five strategic objectives of the case study : Create one (1) weighted matrix, using Microsoft Word, for evaluating an alternative to keeping the current journal subscription system.

Webpage using the character code : What expression is used to insert an em dash into a webpage using the character code 8212.

Discuss public accounting firms with non-cpa firms : Determine the major ethical issues created by the mergers of public accounting firms with non-CPA firms that perform accounting services

What potential effect affirmative action have on employees : What potential effect does affirmative action have on employees and the workplace? Please provide examples and references for your response.

User Account

All Pages