Question

In: Advanced Math

An oil company operates two refineries in a certain city. Refinery I has an output of...

An oil company operates two refineries in a certain city. Refinery I has an output of 200, 100, and 100 barrels of low-, medium-, and high-grade oil per day, respectively. Refinery II has an output of 100, 200, and 600 barrels of low-, medium-, and high-grade oil per day, respectively. The company wishes to produce at least 1000, 1400, and 3000 barrels of low-, medium-, and high-grade oil to fill an order. If it costs $400/day to operate Refinery I and $600/day to operate Refinery II, determine how many days each refinery should be operated to meet the production requirements at minimum cost to the company.

Refinery I     days
Refinery II     days


What is the minimum cost?
$

Solutions

Expert Solution

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refinery 1 = 2 days

refinery 2 = 6 days

minimum cost = 4400


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