Linear Programming : Maximizing Profit
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My Oil Company has 5,000 barrels 1 of oil and 10,000 barrels of oil 2. The company sells two products: gasoline and heating oil. Both products are produced by combining oil 1 and oil 2. The quality level of each oil is as follows: oil 1 -- 10; oil 2 -- 5. Gasoline must have and average quality level of at least 8, and heating oil at least 6. Demand for each product must be created by advertising. Each dollar spent advertising gasoline creates 5 barrels of demand and each spent on heating oil creates 10 barrels of demand. Gasoline is sold for $25 per barrel, heating oil for $20. Formulate a Linear Programming (LP) model to help me miximize profit. Assume that no oil of either type can be purchased.
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Linear programming is used to formulate a model to maximize profit. The solution is detailed and well presented. The response received a rating of "5" from the student who originally posted the question.
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