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

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

3. Data (given) Crude Stock Viscosity Index Cost Supply Per Day ($/barrel) Cost Supply Per Day Barrels 1207.101,000 2408.501,100 3307.701,200 4559.001,100 BrandMin Viscosity Index Selling Price ($/barrel) Daily Demand (barrels) Regular258.502,000 Multigrade359.001,500 Supreme5010.00750 Selling @

4. 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

5. Setup Viscosity Calculations Viscosity IndexMinimum Viscosity 2025 4035 3050 55 RMS 1795.8333204.166701000 7.1 208502501100 8.5 3795.8333404.166701200 7.7 4041.66667500541.66711009 1591.66715007503964.17 20001500750 Price8.5910 Viscosity39791.675250037500 Viscosity39791.675250037500

6. Results Answer A $ 3,964.17 Answer B $ 3,760.00 Answer C $ 3,910.00

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