San Diego State University Operations And Supply Chain Management Assignment Help - Daily demand

Question - Seastrand Oil Company produces two grades of gasoline: regular and high octane. Both gasolines
are produced by blending two types of crude oil. Although both types of crude oil contain the two
important ingredients required to produce both gasolines, the percentage of important ingredients in
each type of crude oil differs, as does the cost per gallon. The percentage of ingredients A and B in
each type of crude oil and the cost per gallon are shown.


Each gallon of regular gasoline must contain at least 40% of ingredient A, whereas each gallon of
high octane can contain at most 50% of ingredient B. Daily demand for regular and high-octane
gasoline is 800,000 and 500,000 gallons, respectively. How many gallons of each type of crude ...Read More oil
should be used in the two gasolines to satisfy daily demand at a minimumcost? ...Read Less

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