CHAPTER III- METHODOLOGY

ANALYSIS, RESULTS AND INTERPRETATION IV.1 . ANALYSIS

Our problem as stated in chapter 1 was to find the
Dene X1 = number of barrels of aviation oil after distillation X2 = number of barrels of heating oil after distillation X3 = number of barrels of aviation oil after catalysis X4 = number of barrels of heating oil after catalysis X5 = number of barrels of oil to process Objective function: Suncos objective is to maximize profit Profit = revenues - costs, Where Revenues = Revenues of barrels of aviation oil after distillation + Revenues of barrels of heating oil after distillation + Revenues of aviation oil after catalysis + Revenues of heating oil after catalysis Revenues = (cost of aviation oil after distillation / barrel) + cost of heating oil after distillation / barrel) + cost of aviation oil after catalysis / barrel) + (cost of heating oil after catalysis / barrel) Revenues = X1 + X2 + X3 + X4

CHAPTER IV

Cost = (cost of oil to process / barrel) Cost = X5

Profit =

X1 +

X2 +

X3 +

X4

X5

Thus, Suncos objective function is: Max: z = X1 + X2 + X3 + X4 X5

Constraints: Sunco faces the following four constraints: 1) Constraints on available oil per day

X5 20,000 2) Constraints on time available X3 + X4 8

3) Constraints on Aviation oil 1000X1 + 1000X3 = 500X5 4) Contraints on Healing oil 1000X2 + 1000X4 = 500X5 Sign restriction: X1, X2, X3, X4, X5 0 Our Final Linear Program (LP): Max: z = 60X1 + 40X2 + 130X3 + 90X4 40X5

Subject to
X5 20,000 X3 + X4 8000 X1 + X3 = 0.5X5 X2 + X4 = 0.5X5 X1, X2, X3, X4, X5 0

Solving the Linear Program to obtain the optimal solution. In order to solve this LP, we made use of the LINGO Computer Package. Input
MAX = 60*X1+40*X2+130*X3+90*X4-40*X5; ! SUBJECT TO; X5<=20000; X3+0.75*X4<=8000; X1+X3-0.5*X5=0; X2+X4-0.5*X5=0;

IV.2 . RESULTS
Global optimal solution found at iteration: Objective value: Variable X1 X2 X3 X4 X5 Row 1 2 3 4 5 Value 2000.000 10000.00 8000.000 0.000000 20000.00 Slack or Surplus 760000.0 0.000000 0.000000 0.000000 0.000000 3 760000.0 Reduced Cost 0.000000 0.000000 0.000000 2.500000 0.000000 Dual Price 1.000000 10.00000 70.00000 60.00000 40.00000

IV.3 . INTERPRETATION OF RESULTS