HW#3B.2010W

# HW#3B.2010W - COMMERCE 290 Homework 3B Complete by This...

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COMMERCE 290 Homework # 3B Complete by: October 14, 2010 This homework is for practice only and is NOT to be handed in. However, students should have completed this by the date indicated above This is a Group Homework. This Homework is to be completed in groups of either 2 people or 3 people. It is expected that each member of the group will contribute in equal parts to all problems. This includes participating in the discussion and debate about the problem, developing appropriate models and the writing of the homework. Refer to “Rules for Groups” attached to this homework. DIRECTIONS: 1. For Questions #1, write all your answers in the indicated spaces and show all work on this paper. No additional pages will be accepted. For Question #2, add the pages on to the end of this Homework. 2. Show all work for all non multiple choice questions on this homework paper. No credit for answers only! 3. Be sure to include your units in each answer. Group Member Information: Lab # LASTNAME, Firstname Student # Problem Maximum Possible Marks Awarded 13 0 23 0 Total 60

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Problem 1 (30 marks) Note: The story below is a slightly modified version of the Lucky Strike problem done in class this term. The only difference is that Lucky now has 3 products, Regular, Mid-Grade and Ultra gasoline compared to the 2 product problem that was discussed in class. This week, the Lucky Strike Oil Company has the opportunity to purchase up to 500,000 litres of OilA at a cost of \$0.32 per litre 275,000 litres of OilB at a cost of \$0.38 per litre and 425,000 litres of OilC at a cost of \$0.34 per litre. With this oil, Lucky can produce 3 grades of gasoline - Regular, Mid-Grade and Ultra. Regular gas must be at least 45% OilA, not over 25% OilB with the remainder being OilC. Mid-Grade gas must be at least 40% OilA, at most 20% OilC with the remainder being OilB. Ultra Gas must be at least 35% OilB, not more than 35% OilC and the remainder being OilA. The selling price of Regular gas is \$0.42 per litre; Mid-Grade sells for \$0.44 per litre and Ultra sells for \$0.51 per litre. The company would like to know how to blend the ingredients in order to maximize profits. This problem was correctly formulated as a linear programming problem on Excel and solved using Solver. The solved model, with an optimal solution and Sensitivity Report, are attached. Use only these printouts to answer the following questions. To receive full marks, be sure to include your units when answering the following questions. QUESTIONS ARE INDEPENDENT. (a) (1 mark) How many litres of Regular Gas should be produced? Your Answer: (b) (1 mark) Determine the total number of litres to produce.
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## This note was uploaded on 01/19/2011 for the course COMMERCE 290 taught by Professor Brianogram during the Winter '09 term at UBC.

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HW#3B.2010W - COMMERCE 290 Homework 3B Complete by This...

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