Network Modeling: Oil Blending Team 1 (Shahram, Yusuf, David, Rush)

Background Information 3 Gasoline Brands ◦ Regular ◦ Multigrade ◦ Supreme Each brand’s composition = 1:m crude stocks Crude Stocks ◦ Each have different viscosity index

Data (given) Crude Stock Viscosity Index Cost Supply Per Day ($/barrel) Cost Supply Per Day Barrels , , , ,100 BrandMin Viscosity Index Selling Price ($/barrel) Daily Demand (barrels) Regular ,000 Multigrade ,500 Supreme

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

Setup Viscosity Calculations Viscosity IndexMinimum Viscosity RMS Price Viscosity Viscosity

Results Answer A $ 3, Answer B $ 3, Answer C $ 3,910.00

Conclusion An obvious one… equalities account for more stringent constraints!