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

Linear programing problem, A paper mill produces two grades of paper viz., ...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Determine the appropriate sample size, Determine the Appropriate Sample Siz...

Determine the Appropriate Sample Size The following work sampling data was collected from observing a retail assistant:  Activity

Explain ideas that would increase sales, Your best friend owns a small chil...

Your best friend owns a small children's clothing store located in the downtown area of a community of 50,000 citizens. Business has been slow the past year due the construction of

Explain ethical and conflict of interest issues, Public corporations are le...

Public corporations are led by CEOs and other upper-echelon leaders who, in turn report to shareholders and board of directors (BODs). Interestingly, even though the board overseas

Explain how to create a living, What would you suggest to companies on how ...

What would you suggest to companies on how to create a living, adapting marketing plan?

Explain web-based appraisal systems, What do you think are the pros and con...

What do you think are the pros and cons of using a web-based appraisal systems?

Miss.., Explain what might happen if energy costs increase in future at Nor...

Explain what might happen if energy costs increase in future at NorSal Trondheim

Explain the employer is not vulnerable to a charge, Albert is an assistant ...

Albert is an assistant store manager for a national discount retailer. When Albert was denied a promotion to store manager he filed a claim based on religious discrimination with t

Explain variable costs, Explain Variable costs. Variable costs converse...

Explain Variable costs. Variable costs conversely, tend to vary directly along with the volume of output. Illustrations of variable cost are: - * Direct production labour co

Inventory, What is ABC analysis in inventory control? Discuss its advantage...

What is ABC analysis in inventory control? Discuss its advantages/disadvantages

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