Quantitative Techniques: Theory and Problems

BLENDING PROBLEMS

Problem 1.80

A refinery makes 3 grades of petrol (A, B, C) from 3 crude oils (d, e, f,). Crude can be used in any grade but the others must satisfy the following specifications

 

Grade	Specification	Selling price per litre
A	Not less than 50% crude d	16
	Not more than 25% crude e.
B	Not less than 25% crude d	13
	Not more than 50% crude e
C	No specifications	11

 

There are capacity limitations on the amounts of the three crude elements that can be used.

 

Crude	Capacity	Price/litre
d	2,50,000	19
e	2,50,000	11
f	1,50,000	13

 

Build a LPP to produce the maximum profit.

Solution

Let there be	x1 litres of d in A
	x2 litres of e in A
	x3 litres of f in A
	y1 litres of d in B