*5. OilCo is building a refinery to

*5. OilCo is building a refinery to produce four products: diesel, gasoline, lubricants, and jet
fuel. The minimum demand (in bblJday) for each of these products is 14,000,30,000,
10,000, and 8,000, respectively. Iran and Dubai are under contract to ship crude to OilCo.
Because of the production quotas specified by OPEC (Organization of Petroleum Exporting
Countries) the new refinery can receive at least 40% of its crude from Iran and
the remaining amount from Dubai. OilCo predicts that the demand and crude oil quotas
will remain steady over the next ten years.
The specifications of the two crude oils lead to different product mixes: One barrel
of Iran crude yields .2 bbl of diesel, .25 bbl of gasoline,.l bbl of lubricant, and .15 bbl of
jet fuel. The corresponding yields from Dubai crude are .1, .6, .15, and .1, respectively.
Oileo needs to determine the minimum capacity of the refinery (in bbll day).