Saudi to produce two general classes of products

Assignment Help Operation Management

Reference no: EM132260495

1. Chemical Processing - Input/Output Processing - Blending

The Massoil Refinery processes two different kinds of crude oil, Venezuelan and Saudi to produce two general classes of products, Light and Heavy. Either crude oil can be processed by either of two modes of processing, Short or Regular. The processing cost and the amounts of Heavy and Light produced depend upon the mode of processing used and the type of crude oil used. Costs vary, both across crude oils and across processing modes. The relevant characteristics are summarized in the table below. For example, the short process converts each unit of Venezuelan crude to .45 units of Light product, .52 units of Heavy product and .03 units of waste.

SHORT PROCESS REGULAR PROCESS

Venezuelan Saudi Venezuelan Saudi

Light product fraction .45 .60 .49 .68

Heavy product fraction .52 .36 .50 .32

Unusable product fraction .03 .04 .01 .00

Saudi crude costs $22 per unit while Venezuelan crude costs $21 per unit. The short process costs $2.10 per unit processed while the regular process costs $2.50 per unit. During any week, Massoil can process at most 10,000 units of crude at the regular mode and 13,000 units of crude at the short mode.

The respective market values of light and heavy products are $29 and $27 per unit, while the unusable product is disposed of at the cost of $1 per unit. Formulate a LP problem that optimally determines the amounts of crudes to buy and the processes to run.

What are the optimal purchasing and operating decisions?

Reference no: EM132260495

Questions Cloud

Drilling for water dispute : Melvin and Belladonna own adjoining farms in Parched County, New Mexico, an area where all agriculture requires irrigation, which they both use in their farming

Develop market outlook and outline your forex strategies : Develop a market outlook and outline your forex trading strategies you intend to undertake for the next 180-day period - you do not need to explain such terms

Slip sheets replacing pallets in distribution centers : Share your thoughts on slip sheets replacing pallets in distribution centers/warehouses. Do you think this is beneficial and should companies switchover.

How your chosen strategies could also be utilized : Share how your chosen strategies could also be utilized as preventative or protective strategies to implement the next time you encounter worry or sadness.

Saudi to produce two general classes of products : The Massoil Refinery processes two different kinds of crude oil, Venezuelan and Saudi to produce two general classes of products,

Describe the important role that neurotransmitters have : Describe the important role that neurotransmitters have on mental health and dysfunction. Describe one physical brain anomaly associated with a mental.

Manufacturers maximizes efficiency of zara supply chain : Explain how utilizing both its in-house facilities and external manufacturers maximizes the efficiency of Zara’s supply chain.

Appraise current use of performance assessment information : Appraise the current use of performance assessment information in its financial system

What opportunities and challenges might trends present : Discuss three current or future trends impacting the HR profession. What opportunities and challenges might these trends present for HR and for the organization

User Account

All Pages