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

What lead to negative performance, Please explain in the detail the answer ...

Please explain in the detail the answer for the following scenario: You work for a small consulting firm and, like most companies; you are currently facing tight budget constraints

Explain strategic business plan, You have been working for some time at Uni...

You have been working for some time at Unique Shoes, a local shoe store that specializes in unusual shoe designs and custom fitting. Currently, customers come to the store to selec

Explain the ftc prohibit the use of this commercial, Perfect Face Cream ran...

Perfect Face Cream ran a commercial to showcase its new Wrinkle-Free Face Cream. The commercial showed an older woman with severe wrinkles followed by images of that same woman aft

Investment Management Assignment, Prepare an in-depth report recommending t...

Prepare an in-depth report recommending the appropriate investment of AUD$3 million for a five year investment period for a particular investment client. The investment portfolio i

Impact of activity of listening, How is the activity of listening impacted ...

How is the activity of listening impacted by the particular situation?

Determine the order winning criteria for organisation, 1. What are the orde...

1. What are the order winning criteria for this organisation? Where does the company sit in Schmenner's Service-Process matrix and can you detect the adoption of the principles und

What are the potential advantages of profit sharing plan, To compete more e...

To compete more effectively, your organization is considering a profit sharing plan to increase employee effort and to encourage employees to think like owners. What are the potent

Explain a set of circumstances consider disciplinary action, Describe a set...

Describe a set of circumstances under which you might legitimately consider disciplinary action for a chronic complainer.

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