Question: Westco Petroleum paid Sun Control Systems 42 million to design
Westco Petroleum paid Sun Control Systems $42 million to design and install a computerized control system for its oil refinery located near Los Angeles. The computerized control system monitored and controlled almost every petrochemical process at the facility. The control system consisted of an extremely complicated configuration of computers and custom-designed software. One year after completing the installation of the control system, a junior vice president at Westco recommended shutting down the Los Angeles refinery because “the money spent on the computerized control system made the refinery too costly to operate.” Evaluate the vice president’s advice and provide any advice on the decision.
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