Two gasoline to satisfy daily demand at minimum cost

Assignment Help Operation Management

Reference no: EM131636448

Seastrand Oil Company produces two grades of gasoline: regular and high octane. Both gasolines are produced by blending two types of crude oil. Although both types of crude oil contain the two important ingredients required to produce both gasolines, the percentage of important ingredients in each type of crude oil differs, as does the cost per gallon. The percentage of ingredients A and B in each type of crude oil and the cost per gallon are shown.

Crude Oil Cost Ingredient A Ingredient B

1 $0.15 40% 40%

2 $0.20 70% 10%

Each gallon of regular gasoline must contain at least 60% of ingredient A, whereas each gallon of high octane can contain at most 30% of ingredient B. Daily demand for regular and high-octane gasoline is 900000 and 600000 gallons, respectively. How many gallons of each type of crude oil should be used in the two gasolines to satisfy daily demand at a minimum cost? Round your answers to the nearest whole number. Round the answers for cost to the nearest dollar.

Reference no: EM131636448

Questions Cloud

Do you believe that there actually is crisis in health care : Do you believe that there actually is a crisis in health care in the United States? Why, or why not? Give evidence to support your answer.

Manufacturing processes use lean production tools : Create a concept map on how Sustainable manufacturing processes use Lean Production tools.

Evaluate all realistic market entry options for organisation : Part 1 requires you to evaluate all realistic market entry options for this organisation in your target country market

Why does rome and art of rome hold such a prominent place : Why does Rome, the art of Rome, the history of Rome, the idea of Rome, hold such a prominent place in our collective consciousness?

Two gasoline to satisfy daily demand at minimum cost : How many gallons of each type of crude oil should be used in the two gasolines to satisfy daily demand at a minimum cost?

How many committees from manufacturing are possible : Deal with the following situation: Of a company's personnel, 7 people work in design, 14 in manufacturing, 4 in testing, 5 in sales, 2 in accounting.

Role of parties in both communist and democratic states : Discuss the role of parties in both communist and democratic states.

Should you request a warrant to enter the workplace : Or should you request a warrant to enter the workplace, and thereby gain some time to make sure everything is in order back in the plant?

Discuss a creatures intelligence matter : Does a creature's intelligence matter when determining whether it's morally acceptable or not to eat them, Why or why not

User Account

All Pages