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

Discuss the breakeven point, Discuss the breakeven point. What is the break...

Discuss the breakeven point. What is the breakeven point? Why does a small business need to do a breakeven analysis?

Explain public sector unions, Public sector unions now account for more tha...

Public sector unions now account for more than half of union members, while the private sector accounts for less than half. Why has this change occurred?

Explain leadership training and development, Leadership training and develo...

Leadership training and development throughout all levels of the organization. From your experience discuss the importance this component and why? Include examples

Operation process design, #quwhat is operations process design?what are the...

#quwhat is operations process design?what are the factors that effect a process design?estion..

Explain investment economically acceptable, Orangemen Lofts plans to add 30...

Orangemen Lofts plans to add 300 luxury apartments to its complex in Cohoes. The cost of the land now is $16 million including taxes and fees. The construction cost is expected to

Define challenges of managers providing accurate feedback, Assess the chall...

Assess the challenges of managers providing accurate, timely, and effective feedback to employees. Recommend how managers can overcome any two of the challenges you identified.

After working for 30 years, After working for 30 years, Ramjee Somjee Dutt ...

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did

Explain managerial problem solving discuss the pitfalls, Using managerial p...

Using managerial problem solving discuss the pitfalls of satisficing and escalation of commitment

Illustrate performance dimensions for operational strategy, Illustrate the ...

Illustrate the performance dimensions for operational strategy? Performance dimensions for operational strategy: • Quality for illustrations Marks and Spencer, Thornton’s,

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