Concept explainers
Case summary: Company C is the largest oil company involved in every stage of oil from exploration to sales. It source crude oil from the United States, United Kingdom, Saudi Arabia, Nigeria, Mexico, Russia, and Canada. Company C created a production planning software called Petro. It is a massive linear programming model that is used at all levels model of sales and operation planning. It sets apart Company C is how the company uses the software. Analysts sit next to traders in each of Company C’s commodity trading locations and, through real-time connections. Petro data is constantly being updated with lab analysis of crude from different locales, changes in refinery process capabilities, changes in government or industry specifications, economic ups and downs, seasonal demand patterns, and price structures in the industry.
To determine: Capacity limitations do oil companies and inventory accounted for and used
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