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 important in work-center scheduling, Why is managing bottlenecks so...

Why is managing bottlenecks so important in work-center scheduling?

Describe strategic planning process, As a part of the strategic planning pr...

As a part of the strategic planning process, our firm will have to examine external factors with the EFE Matrix and internal factors with the IFE Matrix. If we only do one of these

Explain what kind of data would be considered a nod, What kind of data woul...

What kind of data would be considered a NOD?/ REFERENCE WHERE THE INFO CAME FROM

Explain why is it important to develop their products, Why is it important ...

Why is it important to develop their products/services marketing plan in writing?

Define customer benefits, In this writing assignment, you will create a bro...

In this writing assignment, you will create a brochure advertising your services as a data repository. Research commercial data repositories. Be sure to understand this business mo

Explain bebts, Champ Sports Corporation buys the assets of Delta Athletic C...

Champ Sports Corporation buys the assets of Delta Athletic Corporation. Champ continues Delta's business and retains the same personnel. Is Champ liable for Delta's debts?

Explain minimum probability of performing needed, A system consists of thre...

A system consists of three identical components. In order for the system to perform as intended, all of the components must perform. Each has the same probability of performance. I

Explain the differences unsecured credit and secured credit, Compare and co...

Compare and contract unsecured credit and secured credit, and explain the key differences. Provide an example for each.

Explain e-activity robust, From the e-Activity, discuss ways the company yo...

From the e-Activity, discuss ways the company you researched could benefit (or more likely already is benefitting) from robust materials requirement planning. Provide specific exam

Explain a mechanistic and organic organization, Contrast a mechanistic and ...

Contrast a mechanistic and organic organization giving an example of each. What would a bureaucracy be more like, mechanistic or organic? Why?

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