Homework Help is Here – Start Your Trial Now!
Business
Operations Management
GulfOil Company (GOC) can buy two types of crude oil: light oil at $49/barrel and heavy oil $45/barrel. When a barrel of oil is refined it yields gasoline, jet fuel, and kerosene in the quantities, shown in the table (in terms of barrel of output per barrel of input). GOC has promised to deliver at least 800,000 barrels of gasoline, 900,000 barrels of jet fuel and 850,000 barrels of kerosene.   a) Write a Linear Programming (LP) formulation that keeps promises and minimizes total oil purchase cost. Assume oil can be purchased in fractions. b) Find and state the optimal solution. c) Compare additional cost of delivering one more barrel of Jet Fuel vs that of Kerosene?

GulfOil Company (GOC) can buy two types of crude oil: light oil at $49/barrel and heavy oil $45/barrel. When a barrel of oil is refined it yields gasoline, jet fuel, and kerosene in the quantities, shown in the table (in terms of barrel of output per barrel of input). GOC has promised to deliver at least 800,000 barrels of gasoline, 900,000 barrels of jet fuel and 850,000 barrels of kerosene.   a) Write a Linear Programming (LP) formulation that keeps promises and minimizes total oil purchase cost. Assume oil can be purchased in fractions. b) Find and state the optimal solution. c) Compare additional cost of delivering one more barrel of Jet Fuel vs that of Kerosene?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question

GulfOil Company (GOC) can buy two types of crude oil: light oil at $49/barrel and heavy oil $45/barrel. When a barrel of oil is refined it yields gasoline, jet fuel, and kerosene in the quantities, shown in the table (in terms of barrel of output per barrel of input). GOC has promised to deliver at least 800,000 barrels of gasoline, 900,000 barrels of jet fuel and 850,000 barrels of kerosene.

 

a) Write a Linear Programming (LP) formulation that keeps promises and minimizes total oil purchase cost. Assume oil can be purchased in fractions.

b) Find and state the optimal solution.

c) Compare additional cost of delivering one more barrel of Jet Fuel vs that of Kerosene?

Gasoline Jet Fuel Kerosene Light oil 0.43 0.20 0.29 Heavy oil 0.32 0.38 0.21
Transcribed Image Text:Gasoline Jet Fuel Kerosene Light oil 0.43 0.20 0.29 Heavy oil 0.32 0.38 0.21
1.Brewery 2.0il Refinery ••. A D G J K L 1 Oil Refinery Problem Decision Variables: Barrels Gasoline Kerosene 0.29 0.21 |Jet Fuel Price Light oil Heavy oil $ 49 $ 45 X1: # of barrels of light oil to purchase X2: # of barrels of heavy oil to purchase 4. 0.43 0.20 0.32 0.38 Constraints: Gasoline Jet Fuel Kerosene Produced 9 >= >= >= 10 Promised 800,000 900,000 850,000 11 12 Objective Function: Total Purchase Cost $ 13 14 15 Total Production: 16 17 18 19 20 21 22 23 24 25 26 27
Transcribed Image Text:1.Brewery 2.0il Refinery ••. A D G J K L 1 Oil Refinery Problem Decision Variables: Barrels Gasoline Kerosene 0.29 0.21 |Jet Fuel Price Light oil Heavy oil $ 49 $ 45 X1: # of barrels of light oil to purchase X2: # of barrels of heavy oil to purchase 4. 0.43 0.20 0.32 0.38 Constraints: Gasoline Jet Fuel Kerosene Produced 9 >= >= >= 10 Promised 800,000 900,000 850,000 11 12 Objective Function: Total Purchase Cost $ 13 14 15 Total Production: 16 17 18 19 20 21 22 23 24 25 26 27
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS