An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 6

Seastrand Oil Company produces two grades of gasoline: regular and high octane. Both gasolines are produced by blending two types of crude oil. Although both types of crude oil contain the two important ingredients required to produce both gasolines, the percentage of important ingredients in each type of crude oil differs, as does the cost per gallon. The percentage of ingredients A and B in each type of crude oil and the cost per gallon are shown.
Each gallon of regular gasoline must contain at least 40% of ingredient A, whereas each gallon oh high octane can contain at most 50% of ingredient B. Daily demand for regular and high-octane gasoline is 800,000 and 500,000 gallon, respectively. How gallons of each type of crude oil should be used in the two gasoline to satisfy demand at a minimum cost?