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?