# solution

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?