Oil Blending . An oil company produces 3 brands of oil regular multigrade and

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    Oil Blending . An oil company produces 3 brands of oil regular multigrade and supreme each brand of oil is composed of one or more of 4 crude stocks each
    having a different viscocity index the relevent data concering the crude stocks are

    Crude

    Stock

    Viscocity

    Index

    Cost

    ($/barrel)

    Supply per day (barrels)

    1

    20

    $ 7.10

    1000

    2

    40

    $ 8.50

    1100

    3

    30

    $ 7.70

    1200

    4

    55

    $ 9.00

    1100

    each brand of oil must meet a min standard for viscocity index and each brand thus sell the different price . The relevant data concerning the three brands of
    oil are

    Brand

    Minimum

    Viscocity

    Index

    Selling price

    ($/barrel)

    Daily demand

    (Barrels)

    Regular

    25

    $ 8.50

    2000

    Multi Grade

    35

    $ 9.00

    1500

    Supreme

    50

    $10.00

    750

    Determine an optimal production plan for a single day assuming that all oil produced during this day can be either stored or sold at

    negiliable cost. What is the optimal mix to meet customer demand and maximize profit?

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