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Q.
An oil company required 12000, 20000 and 15000 barrels of high grade, medium grade and low grade oil respectively. Refinery A produces 100, 300 and 200 barrels per day of high grade, medium grade and low grade oil respectively. While refinery B produces 200, 400 and 100 barrels per day of high grade, medium grade and low grade oil respectively. If refinery A costs Rs 400 per day and refinery B costs Rs 300 per day to operate, then the days should each be run to minimize costs, while satisfying requirements are
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a
b
c
d
answer is B.
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Detailed Solution
For this, we will assume that
Let us assume that x is the days of refinery A and y is the days of refinery B. Total costs incurred will be equal to
Production by Refinery A in x days
Production by Refinery A in x days
Production by Refinery A in x days
Minimize,
At coordinates (120, 0) and (0, 65), we obtain the intersection of the line (1) with the coordinate axes.
Similarly, at coordinates (66.66, 0) and (0, 50), we obtain the intersection of the line (2) with the coordinate axes and at (120, 0) and (0, 65), we obtain the intersection of the line (3) with the coordinate axes.
The feasible region with corner points A (0, 150), B (60, 30) and C (120, 0) is the common shaded region.
Let us just calculate values for the objective function
Hence, the correct answer is option 2) 60, 30
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