# Sunco Oil has three different processes that can be used to manufacture various types of gasoline…

Sunco Oil has three different processes that can be used to
manufacture various types of gasoline. Each process involves blending oils in
the companys catalytic cracker. Running process 1 for an hour costs \$20 and
requires 2 barrels of crude oil 1 and 3 barrels of crude oil 2. The output from
running process 1 for an hour is 2 barrels of gas 1 and 1 barrel of gas 2.
Running process 2 for an hour costs \$30 and requires 1 barrel of crude 1 and 3
barrels of crude 2. The output from running process 2 for an hour is 3 barrels
of gas 2. Running process 3 for an hour costs \$14 and requires 2
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Sunco Oil has three different processes that can be used to
manufacture various types of gasoline. Each process involves blending oils in
the companys catalytic cracker. Running process 1 for an hour costs \$20 and
requires 2 barrels of crude oil 1 and 3 barrels of crude oil 2. The output from
running process 1 for an hour is 2 barrels of gas 1 and 1 barrel of gas 2.
Running process 2 for an hour costs \$30 and requires 1 barrel of crude 1 and 3
barrels of crude 2. The output from running process 2 for an hour is 3 barrels
of gas 2. Running process 3 for an hour costs \$14 and requires 2 barrels of
crude 2 and 3 barrels of gas 2. The output from running process 3 for an hour
is 2 barrels of gas 3. Each month, 4000 barrels of crude 1, at \$45 per barrel,
and 7000 barrels of crude 2, at \$55 per barrel, can be purchased. All gas
produced can be sold at the following per-barrel prices: gas 1, \$85; gas 2,
\$90; gas 3, \$95. Determine how to maximize Suncos profit (revenues less
costs). Assume that only 2500 hours of time on the catalytic cracker are
available each month.

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