MAIN QUESTION:How much of each should be produced in order for maximizedrevenue?
The refinery produces fuel oil and gasoline. We want to helpthem maximize profit. This is a linear programming problem .
Refinery usespetroleum crude oil to refine FUEL OIL andGASOLINE.
At a certain refinary, the refining process requires theproduction of at least twogallons of gasolines for each of fuel oil.
the EIA (U.S Energy Information Administration) expectsresidentual heating oil prices to average 10% higher this winter thanlast. ( Last winter (Jan 2011))
The EIA also expect gasoline prices will track the cost of crudeoil, with regular gaslineprices this winter averaging about 34 cents per gallon higher thanlast winter.
-To meet the anticipated demands of Winter, at leastthree million gallons offuel oil a day will need to produced.
-The demand for gasoline, on the other hand, is not more than 6.4 million gallons aday.
