Oilco produces two products: regular and Premium gasoline. Each product contains .15 gram of lead per liter. The two products are produced from six inputs: reformate, fluid catalytic cracker gasoline (FCG), isomerate (ISO), polymer (POL), MTBE (MTB), and butane (BUT). Each input has four attributes:
Attribute 1 Research octane number (RON) Attribute 2 RVP
Attribute 3 ASTM volatility at 70°C
Attribute 4 ASTM volatility at 130°C
The attributes and daily availability (in liters) of each input are given in Table 1.
The requirements for each output are given in Table 2.
The daily demand (in thousands of liters) for each product must be met, but more can be produced if desired. The RON and ASTM requirements are minimums. Regular gasoline sells for 29.49¢/liter, premium gasoline for 31.43¢. Before being ready for sale, .15 gram/liter of lead must be removed from each product. The cost of removing .1 gram/liter is 8.5¢. At most 38% of each type of gasoline can consist of FCG.
A-) Formulate an LP whose solution will tell Oilco how to maximize their daily profit. Clearly define all decision variables.
B-) Solve your formulation in part A and find the optimal amount of gasoline to be produced. (Use OPL and attach the OPL files to your submission)
C-) Which of the regular or premium products are not used?
D-) If the Premium product cannot be produced more than 30000 liters, what would be the new optimal solution?