Shale Oil, located in the middle east, has a capacity of 1,500,000 bbl of crude oil per day. The final products fromthe refinery include three types of unleaded gasoline with different octane numbers (ON): regular with ON = 87,premium with ON = 89, and super with ON = 92. The refining process encompasses three stages: (1) a distillationtower that produces feedstock (ON = 82) at the rate of 0.2 bbl per bbl of crude oil, (2) a cracker unit that producesgasoline stock (ON = 98) by using a portion of the feedstock produced from the distillation tower at the rate of 0.5bbl per bbl of feedstock, and (3) a blender unit that blends the gasoline stock from the cracker unit and the feedstockfrom the distillation tower. The company estimates the net profit per barrel of the three types of gasoline to be $6.70,$7.20, and $8.10, respectively. The input capacity of the cracker unit is 200,000 bbl of feedstock a day. The demandlimits for regular, premium, and super gasoline are 50,000, 30,000, and 40,000 bbl, respectively, per day. Develop amodel for determining the optimum production schedule for the refinery. You need to solve the problem. Shale Oil, located in the middle east, has a capacity of 1,500,000 bbl of crude oil per day. The final products fromthe refinery include three types of unleaded gasoline with different octane numbers (ON): regular with ON = 87,premium with ON = 89, and super with ON = 92. The refining process encompasses three stages: (1) a distillationtower that produces feedstock (ON = 82) at the rate of 0.2 bbl per bbl of crude oil, (2) a cracker unit that producesgasoline stock (ON = 98) by using a portion of the feedstock produced from the distillation tower at the rate of 0.5bbl per bbl of feedstock, and (3) a blender unit that blends the gasoline stock from the cracker unit and the feedstockfrom the distillation tower. The company estimates the net profit per barrel of the three types of gasoline to be $6.70,$7.20, and $8.10, respectively. The input capacity of the cracker unit is 200,000 bbl of feedstock a day. The demandlimits for regular, premium, and super gasoline are 50,000, 30,000, and 40,000 bbl, respectively, per day. Develop amodel for determining the optimum production schedule for the refinery. You need to solve the problem.

Answered: Shale Oil, located in the middle east,…

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...

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Shale Oil, located in the middle east, has a capacity of 1,500,000 bbl of crude oil per day. The final products from
the refinery include three types of unleaded gasoline with different octane numbers (ON): regular with ON = 87,
premium with ON = 89, and super with ON = 92. The refining process encompasses three stages: (1) a distillation
tower that produces feedstock (ON = 82) at the rate of 0.2 bbl per bbl of crude oil, (2) a cracker unit that produces
gasoline stock (ON = 98) by using a portion of the feedstock produced from the distillation tower at the rate of 0.5
bbl per bbl of feedstock, and (3) a blender unit that blends the gasoline stock from the cracker unit and the feedstock
from the distillation tower. The company estimates the net profit per barrel of the three types of gasoline to be $6.70,
$7.20, and $8.10, respectively. The input capacity of the cracker unit is 200,000 bbl of feedstock a day. The demand
limits for regular, premium, and super gasoline are 50,000, 30,000, and 40,000 bbl, respectively, per day. Develop a
model for determining the optimum production schedule for the refinery. You need to solve the problem.