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 crafting a wining business plan, Analyze the steps involved in craf...

Analyze the steps involved in crafting a wining business plan and make at least one recommendation for improving the process. Explain your rationale for making the recommendation y

Describe potential market share, From my experience, companies need to fact...

From my experience, companies need to factor in the competition and determine their market share. How might a company determine its potential market share?

What benefits do you think the employees derive, Please answer the followin...

Please answer the following questions 1. Why do you think it is important for HR to be a strategic partner to the business? 2. What benefits do you think the employees derive

Explain layout need to be adjusted as demand for same goods, Base on the ca...

Base on the case study: Weldon Hand Tools; how would the layout need to be adjusted as demand for this and similar products builds up?

Explain when it comes to team identity, When it comes to team identity, wha...

When it comes to team identity, what activities would you recommend to strengthen the team identity and, presumably, improve effectiveness of the team?

Explain why are suppliers hesitant about jit purchasing, briefly explain ve...

briefly explain vendor relations in lean systems- a. Why are they important? b. how are they different from adversarial relations of the past? c. why are suppliers hesitan

Explain the role of the hrm professional, How do these policies and practic...

How do these policies and practices align with Apple, Inc.'s legal compliance standards? If alignment is not present, how does this affect the role of the HRM prof

Explain what is the resulting productivity ratio, The total output from a p...

The total output from a production system in one day is 900 units and the total labour necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure,

Short term financial conditions of improving productivity, What are the lon...

What are the long and short term financial consequences of improving productivity in a business?

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