Determine an optimal production plan

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Reference no: EM13110086

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?

Reference no: EM13110086

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