Jake Jung Inc., a small petroleum company, owns two refineries. Refinery 1 costs $27,000 per day to operate, and it can produce 420 barrels of high-grade oil, 320 barrels of medium-grade oil, and 220 barrels of low-grade oil each day. Refinery 2 is newer and more modern. It costs $34,000 per day to operate, and it can produce 480 barrels of high-grade oil, 450 barrels of medium-grade oil, and 380 barrels of low-grade oil each day. The company has orders totaling 43,000 barrels of high-grade oil, 33,000 barrels of medium-grade oil, and 31,000 barrels of low-grade oil. How many days should it run each refinery to minimize its costs and still refine enough oil to meet its orders?
a. This is a minimization problem.
b. How many days should it run each refinery to minimize its costs and still refine enough oil to meet its orders? [Select]
c. What is the optimal cost? $2,971,481.48
d. Are there any unused resources? Select] If so/not, what constraint and how much/or not? [Select]
e. What impact would there be if the demand for low grade oil was increased by 1,000 barrels?
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