Oil Blending . An oil company produces 3 brands of oil regular multigrade and

Oil Blending . An oil company produces 3 brands of oil regular multigrade and supreme each brand of oil is composed of one or more of 4 crude stocks each
having a different viscocity index the relevent data concering the crude stocks are

Crude

Stock

Viscocity

Index

Cost

($/barrel)

Supply per day (barrels)

1

20

$ 7.10

1000

2

40

$ 8.50

1100

3

30

$ 7.70

1200

4

55

$ 9.00

1100

each brand of oil must meet a min standard for viscocity index and each brand thus sell the different price . The relevant data concerning the three brands of
oil are

Brand

Minimum

Viscocity

Index

Selling price

($/barrel)

Daily demand

(Barrels)

Regular

25

$ 8.50

2000

Multi Grade

35

$ 9.00

1500

Supreme

50

$10.00

750

Determine an optimal production plan for a single day assuming that all oil produced during this day can be either stored or sold at

negiliable cost. What is the optimal mix to meet customer demand and maximize profit?