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

Explain quality is considered to be a structural element, Quality is consid...

Quality is considered to be a structural element of the strategic service concept.

Explain how is job analysis performed in a company, 1. Compensation systems...

1. Compensation systems vary from company to company, but tend to be similar in design and overall cost within a specific industry. Why would you think this is so? 2. Why is a well

Analyze the environment and processes and procedures, Analyze the environme...

Analyze the environment, processes, and procedures at your work or school to determine which aspects can be controlled and which cannot be controlled. Explain your rationale. •From

Limitations of e-business, Limitations of E-Business 1.      Problems ...

Limitations of E-Business 1.      Problems relating to the security of the data  2.      Limitations of bandwidth (speed of data transmission)  3.      Standardisation o

Explain biggest challenges are to a hpt professional, What do you think the...

What do you think the biggest challenges are to a HPT professional in the Analysis phase of a project? Why?

Customer needs - business strategy, Customer Needs - Business Strategy ...

Customer Needs - Business Strategy A key aspect of developing business strategy is the determination of customer needs and wants in the markets to be targeted. There are many

Explain what would happen without a code, In the field of human services, t...

In the field of human services, there are very important ethical codes that should be followed as outlined by the National Association of Social Workers. After viewing the short vi

Explain demand for product is not a constraint, Which of the following is t...

Which of the following is true? Once you complete the five steps, the process is complete Another constraint will always appear when the original constraint is broken Dema

Types of process technologies - batch production, Types of Process Technolo...

Types of Process Technologies - Batch Production Under this system the manufacturing is done in batches or groups or lots either on the basis of customer order or with a hope

What are the advantages of predetermined time standards, What are the advan...

What are the advantages of predetermined time standards (PTS)?  Answer: Quicker and cheaper than time study; likely to be more reliable; valuable for estimating new jobs; can be

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