Reference no: EM132911809
Please clearly list decision variables, objective function (as a linear equation) and constraints! Insert screenshots of the step by step process in solver or solver table.
Valvolime oil company produces three brands of oil: regular, multigrade, and supreme. Each brand of oil is composed of one or more of four crude stocks, each 1) having a different lubrication index. The relevant data concerning the crude stocks are as follows:
Crude Stock Lubrication Index Cost ($/Barrel) Daily Supply (Barrels)
1 20 7.1 1000
2 40 8.5 1000
3 30 7.7 1200
4 55 9 1100
Each brand of oil must meet a standard for a lubrication index, and each brand thus sells at a different price. The relevant data concerning the three brands of oil are as follows.
Brand Minimum Lubrication Index Cost ($/Barrel) Daily Demand (Barrels)
Regular 25 8.5 2000
Multigrade 35 9 1500
Supreme 50 10 750
Model an optimal plan for a single day, assuming that production can be either sold or else stored at negligible cost. The daily demand figures are subject to alternative interpretations. Investigate the following.
a) The daily demand represents potential sales. In other words, the model should contain demand ceilings (upper limits). What is the optimal profit?
b) The daily demands are strict obligations. In other words, the model should contain demand constraints that are met precisely. What is the optimal profit.
c)The daily demands represent minimum sales commitments, but all output can be sold. In other words, the model should permit the production to exceed the daily commitments. What is the optimal profit?
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