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Homework 2 Carrington Oil

Homework 2 Carrington Oil - Producing gasoline at...

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Producing gasoline at Carrington Oil Data on crudes Crude 1 Crude 2 Cost per barrel $56 $65 Impurity percentage 10% 2% Availability 4000 4500 Purification cost per barrel $3.50 Percent impurities eliminated 50% Data on types of gas Unit price Max impurity Max sales Gas 1 $72 4% 4200 Gas 2 $84 3% 4300 Blending and purification decisions (barrels of each crude into each type of gas) Unpurified Purified Crude 1 Crude 2 Crude 1 Crude 2 Total sold Gas 1 140 1633.33 2426.67 0 4200 Gas2 0 2866.67 1433.33 0 4300 Constraints on crude availability Crude 1 Crude 2 Used 4000.00 4500.00 Available 4000 4500 Impurity constraints (in barrels) Actual Allowed Gas 1 168 168 Gas2 129 129 Cost of buying crudes $516,500 Cost of purification $13,510 Revenue from selling gas $663,600 Profit $133,590 Sensitivity of crude1 used and profit to availability of crude 1 Barrels of Crude 1 Available Barrels Crude 1 Used Profit 4000 4000.00 $133,590 4100 4100.00 $133,930 4200 4200.00 $134,270 4300 4233.33 $134,383 4400 4233.33 $134,383 4500 4233.33 $134,383 4600 4233.33 $134,383 4700 4233.33 $134,383 4800 4233.33 $134,383 4900 4233.33 $134,383 5000 4233.33 $134,383 Sensitivity of crude 2 used and profit to availability of crude 2 Barrels of Crude 2 Available Crude 2 Used Profit 4500 4500.00 $133,590
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4600 4500.00 $133,590 4700 4500.00 $133,590 4800 4500.00 $133,590 4900 4500.00 $133,590 5000
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