Essentials of Business Analytics 1st Edition by Jeffrey Camm,James Cochran,Michael Fry,Jeffrey Ohlmann ,David Anderson

Exercise 4

Bay Oil produces two types of fuel (regular and super) by mixing three ingredients. The major distinguishing feature of the two products is the octane level required. Regular fuel must have a minimum octane level of 90, whereas super must have a level of at least 100. The cost per barrel, octane levels, and available amounts (in barrels) for the upcoming two-week period appear in the following table, along with the maximum demand for each end product and the revenue generated per barrel:


Develop and solve a linear programming model to maximize contribution to profit. What is the optimal contribution to profit