A company owns two refineries in Dallas and New York. The company can purchase two types of crude oil: light crude oil, and heavy crude oil at the prices of $15 and $10 per barrel, respectively. Because of shortages, the maximum amounts of these crudes that can be purchased are 3 million and 2 million barrels, respectively. The following quantities of gasoline, kerosene, and jet fuel are produced per barrel of each type of oil:
Note that 5 percent and 8 percent of the light and heavy crude are lost during the refining process, respectively. The company has contracted to deliver these products to three consumers in Kansas City, Los Angeles, and Detroit. The demands of these products are given below:
It is desired to find the amounts that must be purchased by the company of each crude type at each of its refining facilities, and the shipping pattern of the products to Kansas City, Los Angeles, and Detroit that satisfy the demands and minimize the total cost (purchase plus shipping). The shipping and handling of a barrel of any finished product from the refineries to the consumers is given below:
a. Formulate the problem.
b. Suggest a decomposition scheme for solving the problem.
c. Solve the problem using your scheme in Part (b).
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more