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

Vogel approximation methods, Vogel Approximation Methods ( VAM): Step...

Vogel Approximation Methods ( VAM): Step 1: For each row the transportation table identify the smallest and next to smallest cost. Determine the different between the

Managing material flow along the supply chain, Managing Material Flow along...

Managing Material Flow along the Supply Chain Managing material flow along the supply chain as a single activity:  Strategic use of the supply chain   The u

Explain methods for the number of gallons of gasoline, Following are two we...

Following are two weekly forecasts made by two different methods for the number of gallons of gasoline, in thousands, demanded at a local gasoline station. Also shown are actual de

Explain when linking marketing requirements, When linking marketing require...

When linking marketing requirements and manufacturing strategy, what design approaches for shop floor system should be considered? JIT and Lean MRP and PAC MRP and JIT

Approaches for handling customer complaints and listening to, explain appro...

explain approaches for handling customer complaints and listening to customers

Explain which of the four do you believe are the most effect, Griffin cites...

Griffin cites that there are four methods of reinforcement to maintain proper behaviour at the work place. What are they and are they used at your current/former workplace? Which o

Negative tradeoffs associated with an outsourcing production, Toyota's safe...

Toyota's safety recalls - Are they indicators of problems associated with quality management, outsourcing or simply indicators of setting inconsistent competitive priorities in ope

Explain what are the advantages and disadvantages, Discuss the advisability...

Discuss the advisability of using modular assemblies in manufacturing. (What are the advantages and disadvantages?) To what extent can these arguments be applied to service product

Explain companies can voluntarily acknowledge a union, Companies can volunt...

Companies can voluntarily acknowledge a union through a card check recognition process if it appears to have 30% support.

How a factory can produce high-quality products, Can a factory be fast, dep...

Can a factory be fast, dependable, flexible, produce high-quality products, and still provide poor service from a customer's perspective?

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