Explain what is the maximized profit, Operation Management

Assignment Help:

Riverside Oil Company in eastern Kentucky produces 3 different grades of gasoline. They are regular, premium, and supreme grades. Each barrel of regular grade sells for $82 while premium grade sells for $88 per barrel and supreme grade sells for $89 per barrel. Petroleum component A, B, and C are purchased to be blended together for the production of three different grades of gasoline. The availability and cost of petroleum components A, B, and C are given in the following table. Petroleum Component Barrels available Cost per Barrel A 10000 $32 B 12000 $45 C 15000 $39 Also, the blending specifications for these three grades of gasoline are as follows: Product Blending Specification Regular at least 25% of A; no more than 30% of B; no restriction on C Premium at least 35% of B; no restriction on A and C Supreme no more than 25% of A; no restriction on B; at least 50% on C Our goal is to maximize the profit from this production process. a.List the linear program for this problem. b.Use "Management Scientist" software to solve the program and report your optimal way to blend these three petroleum components for production. c.What is the maximized profit? Use Only a WORD file as attachment to submit your assignment. Only one attachment file (a WORD file) can be submitted for grading. You do NOT need to send in your working file from the software "Management Scientist".


Related Discussions:- Explain what is the maximized profit

Explain the system utilization rate and the probability, Sid Das Brick Dist...

Sid Das Brick Distributors currently employs 1 worker whose job is to load bricks on outgoing company trucks. An average of 24 trucks per day, or 3 per hour, arrive at the loading

Explain was any sexual harassment involved in this situation, Was any sexua...

Was any sexual harassment involved in this situation? If so what kind was it?

Explain expected return on the market, Assume that the risk-free rate is 7....

Assume that the risk-free rate is 7.0% and the expected return on the market is 8%. What is the required rate of return on a stock with a beta of 1.4? Round your answer to two deci

Current trends in operation management, What is the relationship between ma...

What is the relationship between mass customisation and rapid product development

Benefits of effective operations management, what are the benefits of effec...

what are the benefits of effective operations management. Discuss.

How several hours of production time would you schedule, For the four basic...

For the four basic configurations that follow, assume that the market is demanding product that must be processed by both Resource X and Resource Y for Cases I, II and III. For Cas

Look to shareholders - financial perspective, Look to Shareholders - Financ...

Look to Shareholders - Financial Perspective  In this perspective, the company identifies individual function contribute to the accomplishment of its overall mission and strat

Explain monitor and report project progress, How can the project baseline a...

How can the project baseline and the earned value approach for variance analysis be used to monitor and report project progress?

Explain private employees to prevent drug, Should urine testing, or other t...

Should urine testing, or other types of testing, be permitted among public and private employees to prevent drug and alcohol abuse? why or why not?

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