Why management scientist to find the optimal solution, Operation Management

Assignment Help:

Dinoco produces three types of oil products: domestic oil, petrol for car and aviation fuel. Each product must meet the minimum average octane regulation. The average octane levels must be at least 5 for domestic oil, 10 for petrol and 8 for aviation fuel. To produce these products, Dinoco purchases two types of crude oil; Arabian Night (at $120 per barrel) and Brent (at $90 per barrel). Each day, at most 8,000 barrels of each type of crude oil can be purchased. Crude Oils must be distilled to be used for the production of Dinoco's three products. Each day, at most 12,000 barrels of crude oil can be distilled. It costs $20 to distil a barrel of oil (whether it is Brent or Arabian Night). The results of distillation are as follows: • Each barrel of Arabian Night yields 0.6 barrels of naphtha, 0.3 barrel of distilled 1, and 0.1 barrel of distilled 2. Each barrel of Brent yields 0.4 barrels of naphtha, 0.4 barrel of distilled 1, and 0.2 barrel of distilled 2. Dinoco's three products are produced by mixing naphtha, distilled 1, and distilled 2. Due to the regulation, however, distilled naphtha cannot be used for aviation oil. The octane level for types of distilled are 12, 10, and 4 for naphtha, distilled 1 and distilled 2, respectively. All domestic oil produced can be sold at $200 per barrel; all petrol produced sold at $300 per barrel, and all aviation fuel sold at $280 per barrel. For company's product mix consideration, at least 2,500 barrels of each product must be produced daily. (a) Formulate an LP to maximise Dinoco's daily profit. You must list any assumption(s) you have made in your formulation. And, use Management Scientist to find the optimal solution.


Related Discussions:- Why management scientist to find the optimal solution

Reference Book, Hello Sir, This is Riddhi Trivedi I, am Faculty of Commerge...

Hello Sir, This is Riddhi Trivedi I, am Faculty of Commerge and Management. Subject is there Materials & Production Management, but i want a perfect reference book where i get all

Explain optimum service level is what percent, In a single period model if ...

In a single period model if shortage cost is four times excess cost then the optimum service level is what percent?

Operations and Maintenance document, Hello, I need some help for O & M doc...

Hello, I need some help for O & M doc. So I am looking for a template or How and what to be included in the doc for a public facing Azure Website built using Drupal 8. Thanks

Implementation of the quality planning and control activity, Question : ...

Question : (a) Discuss the various stages involved in the development and implementation of the quality planning and control activity. (b) Checking should be carried out at

String diagram, String Diagram: String  diagram  is a simple  tool for...

String Diagram: String  diagram  is a simple  tool for  analyzing  and designing  work  space  such that  movement  can be  minimized. The  basic  diagram  is a scale  plan or

Explain how the government can implement information plan, Propose a plan f...

Propose a plan for how the government can implement information security plans to ensure its critical information is safe and protect.

Explain impedes compliance and innovation, Identify a legal topic associate...

Identify a legal topic associated with the UK's HR that impedes compliance, innovation, growth, and sustainability. Please make sure that the legal topic is in reference to Unite

Needs for cuba to develop a free and independent trade union, Give your ass...

Give your assessment of the requirements for Cuba to develop a free and independent trade union. Determine if it is essential for a free society.

Explain what type of human resource strategy did lenovo, Overview: This cas...

Overview: This case explores the mission to become a major player in the global personal computer industry. Lenovo acquired IBM%u2019s personal computer division in 2004 to become

Explain student aid and scholarships office, You have just been notified by...

You have just been notified by the Student Aid and Scholarships Office that you would receive a regents scholarship of $2000 for the coming academic year. Furthermore, your applica

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd