Oilco is building a refinery to produce four products: diesel, gasoline , lubricants, and jet fuels. The
Question:
Oilco is building a refinery to produce four products: diesel, gasoline , lubricants, and jet fuels. The minimum demand ( in bbl/day ) for each of these products is 14,000 , 30,000 , 10,000 and 8000 respectively. Iran and Dubai are under contract to ship crude to Oilco. Because of the production quotas specified by OPEC ( Organization of Petroleum Exporting Countries) the new refinery can receive at least 40% of its crude from Iran and the remaining amount from Dubai. Oilco predicts that the demand and crude oil quotas will remain steady over the next ten years.
The specifications of the two crude oils lead to different product mixes: One barrel of Iran crude yields 0.2 bbl of diesel , 0.25bbl of gasoline, 0.1bbl of lubricant, and 0.15bbl of jet fuel. The corresponding yields from Dubai crude are 0.1 , 0.6 , 0.15, and 0.1 , respectively. Oilco needs to determine the minimum capacity of the refinery (in bbl/day).
Discrete Mathematics and Its Applications
ISBN: 978-0073383095
7th edition
Authors: Kenneth H. Rosen