Venezuela Oil produces four products from crude as follows: Crude Type Cost/barrel Availabili

Question: Venezuela Oil produces four products from crude as follows:

Crude Type	Cost/barrel	Availability	Density	Sulfur
	42 gallons		lb/gallon	oz/barrel
A	64	12000	6.1	0.05
B	44	18000	6.9	0.03
C	52	15000	7.1	0.04

The percentage yields possible from each crude are:

Crude Type	Gasoline	Diesel	Fuel Oil	Kerosene	Residual
A	35	15	25	15	10
B	50	15	10	20	5
C	20	25	30	15	10

Sell Price	$1.82	$1.76	$1.90	$1.66	$1.56
Sulfur Restriction oz/gallon	0.0009	0.001	0.0008	0.0009	0.0008

Each gallon of refined product has the same proportion of sulfur as its crude did. Refining costs $4 per barrel and the total capacity of the refinery is 150000 gallons. Find the optimum mix of the three crude sources to maximize the return. There are no marketing constraints on the final products

Price: $2.99

Solution: The solution consists of 3 pages
Deliverables: Word Document