Refinery Cost Minimization
1. **State the problem:**
We have two refineries with different costs and production capacities.
We want to minimize the total operating cost while meeting the oil order demands for high, medium, and low-grade oil.
2. **Define variables:**
Let $x$ = number of days Refinery 1 runs.
Let $y$ = number of days Refinery 2 runs.
3. **Objective function:**
Minimize cost:
$$ \text{Cost} = 20000x + 25000y $$
4. **Constraints:**
We must meet the demand for each grade of oil:
- High-grade oil:
$$ 400x + 300y \geq 25000 $$
- Medium-grade oil:
$$ 300x + 400y \geq 27000 $$
- Low-grade oil:
$$ 200x + 500y \geq 30000 $$
Also, non-negativity constraints:
$$ x \geq 0, \quad y \geq 0 $$
5. **Solve the system to minimize cost:**
We solve the linear program:
Minimize $$20000x + 25000y$$ subject to:
$$ 400x + 300y \geq 25000 $$
$$ 300x + 400y \geq 27000 $$
$$ 200x + 500y \geq 30000 $$
$$ x,y \geq 0 $$
6. **Finding feasible intersection points:**
Solve equations by equality to find candidate points:
Equation 1 and 2:
Multiply eq1 by 4 and eq2 by 3:
$$1600x + 1200y = 100000 $$
$$900x + 1200y = 81000 $$
Subtract:
$$700x = 19000 \implies x = \frac{19000}{700} = 27.14$$
Use in eq1:
$$400(27.14) + 300y = 25000 \implies 10857 + 300y = 25000 \implies 300y = 14143 \implies y = 47.14$$
Check third constraint:
$$200(27.14) + 500(47.14) = 5428 + 23570 = 28998 < 30000$$ so not feasible.
Equation 1 and 3:
$$400x + 300y = 25000$$
$$200x + 500y = 30000$$
Multiply eq3 by 2:
$$400x + 1000y = 60000$$
Subtract eq1:
$$700y = 35000 \implies y = 50$$
Use in eq1:
$$400x + 300(50) = 25000 \implies 400x + 15000 = 25000 \implies 400x = 10000 \implies x = 25$$
Check eq2:
$$300(25) + 400(50) = 7500 + 20000 = 27500 \geq 27000$$ feasible.
Equation 2 and 3:
$$300x + 400y = 27000$$
$$200x + 500y = 30000$$
Multiply eq2 by 5 and eq3 by 4:
$$1500x + 2000y = 135000$$
$$800x + 2000y = 120000$$
Subtract:
$$700x = 15000 \implies x = 21.43$$
Use in eq2:
$$300(21.43) + 400y = 27000 \implies 6429 + 400y = 27000 \implies 400y = 20571 \implies y = 51.43$$
Check eq1:
$$400(21.43) + 300(51.43) = 8571 + 15429 = 24000 < 25000$$ not feasible.
7. **Candidate feasible corner point:**
$(x, y) = (25, 50)$
8. **Check other bounds (e.g., $x=0$, $y$ large enough):**
At $x=0$, check constraints:
$$300y \geq 25000 \Rightarrow y \geq 83.33$$
$$400y \geq 27000 \Rightarrow y \geq 67.5$$
$$500y \geq 30000 \Rightarrow y \geq 60$$
So $y \geq 83.33$ to meet all.
Cost: $$20000(0) + 25000(83.33) = 2083333$$
At $y=0$:
$$400x \geq 25000 \implies x \geq 62.5$$
$$300x \geq 27000 \implies x \geq 90$$
$$200x \geq 30000 \implies x \geq 150$$
So $x \geq 150$.
Cost: $$20000(150) + 25000(0) = 3000000$$
9. **Calculate cost at $(25, 50)$:**
$$20000(25) + 25000(50) = 500000 + 1250000 = 1750000$$
10. **Conclusion:**
Best solution is to run Refinery 1 for 25 days and Refinery 2 for 50 days to minimize cost while meeting demands.
**Final answer:**
Run Refinery 1 for 25 days and Refinery 2 for 50 days with minimum total cost of 1750000.