Homework 2 Chandler Oil

Homework 2 Chandler Oil - Chandler Blending Problem...

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Unformatted text preview: Chandler Blending Problem Chandler blending model Monetary inputs Gasoline Heating oil Selling price/barrel $25.00 $20.00 Advertising cost/barrel $0.20 $0.10 Quality level per barrel of crudes Crude oil 1 10 Crude oil 2 5 Required quality level per barrel of product Gasoline Heating oil 8 6 Blending plan (barrels of crudes in each product) Gasoline Heating oil Barrels used Barrels available Crude oil 1 3000 2000 5000 <= 5000 Crude oil 2 2000 8000 10000 <= 10000 Barrels sold 5000 10000 Constraints on quality Gasoline Heating oil Quality "points" obtained 40000 60000 >= >= Quality "points" required 40000 60000 Monetary summary Revenue $325,000 Advertising cost $2,000 Profit $323,000 Sensitivity of outputs sold and profit to the selling price of gasoline Price of Gasoline Gasoline Heating Oil Profit $B$19 $C$19 $B$30 Increase 20 15000 $298,500 25 5000 10000 $323,000 $24,500 30 5000 10000 $348,000 $25,000 35 5000 10000 $373,000 $25,000 40 5000 10000 $398,000 $25,000 45 5000 10000 $423,000 $25,000 50 5000 10000 $448,000 $25,000 55 5000 10000 $473,000 $25,000...
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Homework 2 Chandler Oil - Chandler Blending Problem...

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