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posted:
12/3/2011
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48e523fa-f151-4e7d-b965-ae48ec06d63f.xls









A B C D E F

1 Chandler Blending Problem

2

3 Monetary inputs Gasoline Heating oil

4 Selling price/barrel $25.00 $20.00

5 Advertising cost/barrel $0.20 $0.10

6

7 Quality level per barrel of crudes

8 Crude oil 1 10

9 Crude oil 2 5

10

11 Required quality level per barrel of product

12 Gasoline Heating oil

13 8 6

14

15 Blending plan (barrels of crudes in each product)

16 Gasoline Heating oil Barrels used Barrels available

17 Crude oil 1 3000 2000 5000 = >=

Quality "points"

25 required 40000 60000

26

27 Profit summary

28 Gasoline Heating oil

29 Profit/barrel $24.80 $19.90

30

31 Total profit $323,000









Values

48e523fa-f151-4e7d-b965-ae48ec06d63f.xls









A B C D E F

1 Chandler Blending Problem

2

3 Monetary inputs Gasoline Heating oil

4 Selling price/barrel 25 20

5 Advertising cost/barrel 0.2 0.1

6

7 Quality level per barrel of crudes

8 Crude oil 1 10

9 Crude oil 2 5

10

11 Required quality level per barrel of product Decision Variables,

12 Gasoline Heating oil >= 0

13 8 6

14

15 Blending plan (barrels of crudes in each product)

16 Gasoline Heating oil Barrels used Barrels available

17 Crude oil 1 2500 2500 =SUM(B17:C17) = >=

Quality "points" required

25 =B13*B19 =C13*C19

26

27 Profit summary

28 Gasoline Heating oil

29 Profit/barrel =B4-B5 =C4-C5

30

31 Total profit =SUMPRODUCT(B19:C19,B29:C29)

32

33 Objective, Max









Formulas



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