(Solved): A refinery utilises two types of crude oils (Crude 1 and Crude 2) to produce gasoline, kerosene an ...

A refinery utilises two types of crude oils (Crude 1 and Crude 2) to produce gasoline, kerosene and fuel oil. The refinery purchases the crude from upstream suppliers and pays \( \$ 30 / \mathrm{bbl} \) and \( \$ 25 / \mathrm{bb} \) for Crude 1 and Crude 2 respectively. The processing costs for Crude 1 and Crude 2 are \( \$ 0.68 / \mathrm{bbl} \) and \( \$ 0.22 / \mathrm{bbl} \) respectively. Table 1 shows the characteristics and limitations for the various products. What is the maximum profit that the refinery can obtain and how much of each crude oil is required? Comment on your findings. (Formulate and solve using linear programming)