. A refinery manufactures two grades of jet fuel, F1 and F2, by blending four ty

Question

. A refinery manufactures two grades of jet fuel, F1 and F2, by blending four types of gasoline, A, B, C, and D.
Fuel F1 uses the gasolines in the ratio 1:1:2:4, and fuel F2 uses the gasolines in the ratio 2:2:1:3. The supply of
the gasolines is limited to 1000, 1200, 900, and 1500 bbl/day respectively. The costs of each are $120, $90,
$100, and $150 per bbl. Fuels F1 and F2 sell for $200 and $250 per bbl.
a. Determine the optimal production mix for F1 and F2.
b. What is the allowable range for your objective coefficient corresponding to F1?
Interpret what this means for the company

Explanation / Answer

A B C D S.P. QTY.PRODN. F1 1 1 2 4 200 8X F2 2 2 1 3 250 8Y QTY.AVL. 1000 1200 900 1500 COST 120 90 100 150 LET THE PRODUCTION MIX BE

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