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

Layout: Line balancing., Layout: Line balancing Kiko Teddy Bear is a manu...

Layout: Line balancing Kiko Teddy Bear is a manufacturer of stuffed teddy bears. Kiko would like to be able to produce 40 teddy bears per hour on its assembly line. The followin

Explain what type of transmission path, What type of transmission path does...

What type of transmission path does a fixed wireless signal require? a. line-of-sight b. non-line-of-sight c. omni-directional d. code divided

Offer a list one of the seven management tools, List one of the seven manag...

List one of the seven management tools and discuss how they might be used in developing a new product.

Explain manufacturing budget, Explain manufacturing budget. Manufacturi...

Explain manufacturing budget. Manufacturing budget needs the following fundamental budgets or estimates to meet the plans:- (i) To be manufactured, production budget outlini

Ventilation, a. To cater for adequate supply of oxygen or air required for...

a. To cater for adequate supply of oxygen or air required for respiration. b. To provide thermal comfort b maintaining adequate heat balance of the body. c. To get r

Explain a sports marketing mix for your organization, 1. generate a sports ...

1. generate a sports marketing mix for your organization to address the promotion mix of advertising, public relation, sales promotion and pricing 2. Justify market selection de

Explain skills associated with effective project manage, Determine which of...

Determine which of the eight traits or skills associated with being an effective project manager would be the most effective when managing a group of newly hired engineers. Justify

Explain what is the annual rate of return, You discover an antique in your ...

You discover an antique in your attic that you purchased at an estate sale 10 years ago for $400. You auction it in eBay and receive $8000 for your item. What is the annual rate of

Regarding process improvement, During the analysis of a process that was ev...

During the analysis of a process that was evaluated, it was seen that the variability was non-random on several occasions, i.e, it did not meet acceptable quality standards. Howeve

Explain a process capacity methodology, A process capacity methodology that...

A process capacity methodology that is used to show how well parts being produced fit into a range specified by design limits is which of the following? Answers- a. Answer n

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