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29. Riverside Oil Company in eastern Kentucky produces regular and supreme gasoline. Each barrel of regular sells for $21 and must have an octane rating of at least 90. Each barrel of supreme sells for $25 and must have an octane rating of at least 97. Each of these types of gasoline are manufactured by mixing different quantities of the following three inputs: Barrels Available Input Cost per Barrel Octane Rating (in 1000s) 1 $17.25 100 150 2 $15.75 87 350 3 $17.75 110 300 Riverside has orders for 300,000 barrels of regular and 450,000 barrels of supreme. How should the company allocate the available inputs to the production of regular and supreme gasoline to maximize profits? a. Formulate an LP model for this problem. b. Create a spreadsheet model for this problem and solve it using Solver. c. What is the optimal solution?

29. Riverside Oil Company in eastern Kentucky produces regular and supreme gasoline. Each barrel of regular sells for $21 and must have an octane rating of at least 90. Each barrel of supreme sells for $25 and must have an octane rating of at least 97. Each of these types of gasoline are manufactured by mixing different quantities of the following three inputs: Barrels Available Input Cost per Barrel Octane Rating (in 1000s) 1 $17.25 100 150 2 $15.75 87 350 3 $17.75 110 300 Riverside has orders for 300,000 barrels of regular and 450,000 barrels of supreme. How should the company allocate the available inputs to the production of regular and supreme gasoline to maximize profits? a. Formulate an LP model for this problem. b. Create a spreadsheet model for this problem and solve it using Solver. c. What is the optimal solution?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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29. Riverside Oil Čompany in eastern Kentucky produces regular and supreme gasoline. Each barrel of regular sells for $21 and must have an octane rating of at least 90. Each barrel of supreme sells for $25 and must have an octane rating of at least 97. Each of these types of gasoline are manufactured by mixing different quantities of the following three inputs: Octane Rating Barrels Available (in 1000s) Input Cost per Barrel 1 $17.25 100 150 $15.75 87 350 3 $17.75 110 300 Riverside has orders for 300,000 barrels of regular and 450,000 barrels of supreme. How should the company allocate the available inputs to the production of regular and supreme gasoline to maximize profits? a. Formulate an LP model for this problem. b. Create a spreadsheet model for this problem and solve it using Solver. c. What is the optimal solution?
Transcribed Image Text:29. Riverside Oil Čompany in eastern Kentucky produces regular and supreme gasoline. Each barrel of regular sells for $21 and must have an octane rating of at least 90. Each barrel of supreme sells for $25 and must have an octane rating of at least 97. Each of these types of gasoline are manufactured by mixing different quantities of the following three inputs: Octane Rating Barrels Available (in 1000s) Input Cost per Barrel 1 $17.25 100 150 $15.75 87 350 3 $17.75 110 300 Riverside has orders for 300,000 barrels of regular and 450,000 barrels of supreme. How should the company allocate the available inputs to the production of regular and supreme gasoline to maximize profits? a. Formulate an LP model for this problem. b. Create a spreadsheet model for this problem and solve it using Solver. c. What is the optimal solution?
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