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Network Modeling: Oil Blending Team 1 (Shahram, Yusuf, David, Rush)
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Transcript of Network Modeling: Oil Blending Team 1 (Shahram, Yusuf, David, Rush)
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Network Modeling:Oil BlendingTeam 1(Shahram, Yusuf, David, Rush)
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Background Information3 Gasoline Brands
◦Regular◦Multigrade◦Supreme
Each brand’s composition = 1:m crude stocks
Crude Stocks◦Each have different viscosity index
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Data (given)Crude Stock
Viscosity Index
Cost Supply Per Day($/barrel)
Cost Supply Per DayBarrels
1 20 7.10 1,000
2 40 8.50 1,100
3 30 7.70 1,200
4 55 9.00 1,100
Brand Min Viscosity Index
Selling Price ($/barrel)
Daily Demand (barrels)
Regular 25 8.50 2,000
Multigrade 35 9.00 1,500
Supreme 50 10.00 750
Selling @
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So what?Determine an optimal production plan
for a single day…◦Daily demands represent potential
sales… what is the optimal profit? i.e. production =< daily demand
◦The daily demands are to be met precisely… what is the optimal profit? i.e. production = daily demand
◦The daily demands represent minimum sales commitments… what is the optimal profit? i.e. production >= daily demand
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Setup
Viscosity Calculations Viscosity Index Minimum Viscosity20 2540 3530 5055
Max!
R M S1 795.8333 204.1667 0 1000 1000 7.12 0 850 250 1100 1100 8.53 795.8333 404.1667 0 1200 1200 7.74 0 41.66667 500 541.667 1100 9
1591.667 1500 750 3964.172000 1500 750
Price 8.5 9 10
Viscosity 39791.67 52500 37500Viscosity 39791.67 52500 37500
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Results
Answer A $ 3,964.17
Answer B $ 3,760.00
Answer C $ 3,910.00
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ConclusionAn obvious one… equalities
account for more stringent constraints!