1

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

A
Chandler Blending Problem
Monetary inputs
Selling price/barrel
Advertising cost/barrel

Gasoline
$25.00
$0.20

Quality level per barrel of crudes

Crude oil 1
Crude oil 2

Range names:
Available: F17:F18
BlendPlan: B17:C18
Profit: B30
QualityObtained: B23:C23
QualityReqd: B25:C25
Used: D17:D18

Heating oil
$20.00
$0.10

10
5

Required quality level per barrel of product

Gasoline
Heating oil
8
6
Blending plan (barrels of crudes in each product)
Gasoline
Heating oil
Crude oil 1
3000
2000
Crude oil 2
2000
8000
Barrels sold
5000
10000

Barrels used
5000
10000

Constraints on quality

Quality "points" required

Gasoline
40000
>=
40000

Profit summary
Revenue
Advertising cost
Profit

$325,000
$2,000
$323,000

Quality "points" obtained

Heating oil
60000
>=
60000

Sensitivity of profit and outputs sold to the selling price of gasoline

Price of gasoline
Profit
Gasoline
Heating oil
$B$30
$B$19
$C$19
35
$373,000
5000
10000
45
$423,000
5000
10000
55
$473,000
5000
10000
65
$540,000
8333
0

Chandler Blending Problem

<=
<=

Barrels available
5000
10000