2.4 Linear Programming A p p l i c a t i o n s 61 Cereal B is a 60:2:3 mix of oats, coconut, and almond. Cereal C is a 60:3:4:2 mix of oats, raisins, coconut, and almond. The cereals are produced in jumbo 5-lb sizes. All-Natural sells A, B, and C at $2, $2.50, $3.00 per box, respectively. The minimum daily demand for cereals A, B, and C is 500,600, and 500 boxes, respectively Develop an LP model to determine the optimal production mix of the cereals and the associated amounts of ingredients, and find the solution using AMPL, Solver, or TORA. 4. A refinery manufactures two grades of jet fuel, Fl and F2, by blending four types of gasoline, A, B, C, and D. Fuel F l uses gasolines A, B, C, and D in the ratio 1:1:2:4, and fuel F2 uses the ratio 2:2:1:3. The supply limits for A, B, Q and D are 1000,1200,900, and 1500 bbl/day respectively Tlie costs per bbl for gasolines A, B, C, and D are $120, $90, $100, and $150, respectively Fuels Fl and F2 sell for $200 and $250 per bbl, respectively The minimum demand for Fl and F2 is 200 and 400 bbl/day, respectively Develop an LP model to determine the optimal production mix for Fl and F2, and find the solution using AMPL, Solver, or TORA. 5. An oil company distills two types of crude oil,yl and B, to produce regular and premium gasoline and jet fuel. There are limits on the daily availability of crude oil and the minimum demand for the final products. If the production is not sufficient to cover demand, the shortage must be made up from outside sources at a penalty Surplus production will not be sold immediately and will incur storage cost. The following table provides the data of the situation: Fraction yield per bbl Crude Regular Premium Jet Price/bbI ($) bbl/day Crude A .20 .1 .25 30 2500 Crude B .25 .3 .10 40 3000 Demand (bbl/day) 500 700 400 Revenue ($/bbl) 50 70 120 Storage cost for surplus production ($/bbl) 2 3 4 Penalty for untilled demand ($/bbl) 10 15 20 Develop an LP model to determine the optimal product mix for the…