Math Problem Statement

An oil refinery has two sources of crude oil: a light crude that costs $ 35/barrel and a heavy crude that costs $ 30/barrel. The refinery produces gasoline, heating oil, and jet fuel from crude in the amounts per barrel indicated in the following table: Gasoline Heating Oil Jet Fuel Light Crude 0.3 0.2 0.3 Heavy Crude 0.3 0.4 0.2 The refinery has been contracted to supply 900,000 barrels of gasoline, 800,000 barrels of heating oil, and 500,000 barrels of jet fuel. Find the amounts of light and heavy crude that the refinery has to purchase so as to be able to meet its obligations at minimum cost. What is the minimum cost?

Solution

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Math Problem Analysis

Mathematical Concepts

Linear Programming
Optimization
Algebra

Formulas

Objective Function: Cost = 35x_1 + 30x_2
Gasoline Constraint: 0.3x_1 + 0.3x_2 >= 900,000
Heating Oil Constraint: 0.2x_1 + 0.4x_2 >= 800,000
Jet Fuel Constraint: 0.3x_1 + 0.2x_2 >= 500,000

Theorems

Simplex Method

Suitable Grade Level

Grades 11-12 and above (Advanced Math)