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

Explain implementation of a transnational strategy, What do you see as the ...

What do you see as the main organizational problems that are likely to be associated with implementation of a transnational strategy? Explain

Explain what are the four communication styles, 1) Describe the five major ...

1) Describe the five major principles that support communication-style theory. 2) What two dimensions of human behavior are used to identify communication style? 3) What are

Explain safetydrape will never become obsolete, 1. Time How has time aff...

1. Time How has time affected the Safetydrape product? a. The time dimension has not affected Safetydrape at all. b. The time dimension has had a huge effect on Safetydrap

Explain lean relates to an organization being agile, a. Do you think lean r...

a. Do you think lean relates to an organization being agile? b. Would implementing lean into an organization lead to a competitive advantage? if yes, explain, how and what types

Explain the front-room and back-room services, Identify the front-room and ...

Identify the front-room and back-room services for the following organizations. Could these services be improved by increasing or decreasing the degree of customer contact? By sepa

Explain upward communication, Explain Upward Communication. Upward Com...

Explain Upward Communication. Upward Communication: It moves in the form of feedback from subordinate to the superior.  It takes the forms of: - Reports through Subordinat

Explain operating a business in an ethical manner, Operating a business in ...

Operating a business in an ethical manner takes time, effort and commitment. What are the key elements to a company having successful organizational ethics? What can we do as manag

Industrial society - operations function, Industrial Society - Operations F...

Industrial Society - Operations Function In the industrial society, estimated during the period of growth of industrialisation roughly 1820-1920, machines and the production o

Managing organizational change, Applying models and concepts from the cours...

Applying models and concepts from the course, analyze a significant change initiative you have observed, have been affected by or have had a hand in implementing in your organizati

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