The BLEND.lng Model
Blending of Ingredients 1

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In blending problems, two or more raw materials are to be blended into one or more finished goods satisfying one or more quality requirements on the finished goods. Blending problems are of interest in a number of different fields. Some examples include determining an optimal blend for animal feed, finding the least costly mix of ores that produce an alloy with specific characteristics, or deciding on the most efficient combination of advertising media puchases to reach target audience percentages.

In this model, as a production manager at a fuel processing plant, you would like to maximize profit from blending the raw materials butane, catalytic reformat, and maphtha into the two finished products Regular and Premium. These final products must satisfy quality requirements on octane, vapor pressure, and volatility. Each raw material has a limited availability and cost per unit which are known. You know the minimum required for each finished good, the maximum you will be able to sell, and the profit contribution per unit.


Keywords:
Blending | Product Management | Production | Product Mix