Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

please submit the answer in excel fileAn oil company produces two types of gasoline, G1 and G2, from two types of crude oil, C1 and C2. G1 is allowed to contain up to 4% impurities, and G2 is allowed...

1 answer below »

please submit the answer in excel file


An oil company produces two types of gasoline, G1 and G2, from two types of crude oil, C1 and C2. G1 is allowed to contain up to 4% impurities, and G2 is allowed to contain up to 3% impurities. G1 sells for $48 per barrel, whereas G2 sells for $72 per barrel. Up to 4200 barrels of G1 and up to 4300 barrels of G2 can be sold. The cost per barrel of each crude, their availability, and the level of impurities in each crude are listed in the file





Download FinalQuestion4.xlsx

. Before blending the crude oil into gas, any amount of each crude can be “purified” for a cost of $3.00 per barrel. Purification eliminates half of the impurities in the crude oil.



  1. Determine how to maximize profit.

  2. Use SolverTable to determine how an increase in the availability of C1 affects the optimal profit.

  3. Use SolverTable to determine how an increase in the availability of C2 affects the optimal profit.

  4. Use SolverTable to determine how a change in the profitability of G2 changes profitability and the types of gas produced.

copy-of-finalquestion4-eajk5g2n.xlsx
Answered Same Day Dec 13, 2022

Solution

Rochak answered on Dec 13 2022
49 Votes
Data
    Producing gasoline
    Data on crudes
        Crude 1    Crude 2
    Cost per ba
el    $36    $48
    Impurity percentage    10%    2%
    Availability    5000    4500
    Purification cost per ba
el    $3.00
    Percent impurities eliminated    50%
    Data on types of gas
        Unit price    Max impurity    Max sales
    Gas 1    $48    4%    4200
    Gas2    $72    3%    4300
    Blending and purification decisions (ba
els of each crude into each type of gas)
        Unpurified        Purified
        Crude 1    Crude 2    Crude 1    Crude 2    Total sold        Max sales
    Gas 1    3594    0    606    0    4200    <=    4200
    Gas2    0    0    4300    0    4300    <=    4300
    Constraints on crude availability
    Used
    Available
    Impurity constraints (in ba
els)
    Gas 1    168
    Gas2    129
    Cost...
SOLUTION.PDF
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Attach File