Chandler Oil has 5000 barrels of crude oil 1 and 10,000 barrels of crude oil 2 available. Chandler sells gasoline and heating oil. These products are produced by blending together the two crude oils....

Chandler Oil has 5000 barrels of crude oil 1 and 10,000 barrels of crude oil 2 available. Chandler sells gasoline and heating oil. These products are produced by blending together the two crude oils. Each barrel of crude oil 1 has a “quality level” of 10 and each barrel of crude oil 2 has a quality level of 5.7 Gasoline must have an average quality level of at least 8, whereas heating oil must have an average quality level of at least 6. Gasoline sells for $25 per barrel, and heating oil sells for $20 per barrel. We assume that demand for heating oil and gasoline is unlimited, so that all of Chandler’s production can be sold. Chandler wants to maximize its revenue from selling gasoline and heating oil.

Objective To develop an LP spreadsheet model that relates a detailed blending plan to relevant quantities on crude oil inputs and gasoline/heating oil outputs, and to use Solver to find the revenue-maximizing plan that meets quality constraints and stays within limits on crude oil availabilities.