Operations Research

Assignment:
Sunco Oil
Team members:
- Segundo Méndez
- Cristina Cañizales
- Gabriela Bohórquez

Buenos Aires, 28 de Marzo de 2023.

 = # of barrels of crude oil 1 to buy

Variables = # of barrels of crude oil 2 to buy

= # of barrels of crude oil 3 to buy
 = # of crude oil i barrels used to manufacture gas j in barrels
= # of crude oil 1 barrels used to manufacture gas 1 in barrels = # of barrels of gas 1 to sell
= # of crude oil 1 barrels used to manufacture gas 2 in barrels = # of barrels of gas 2 to sell
= # of crude oil 1 barrels used to manufacture gas 3 in barrels = # of barrels of gas 3 to sell
= # of crude oil 2 barrels used to manufacture gas 1 in barrels
= daily spent $ in advertising gas 1
= # of crude oil 2 barrels used to manufacture gas 2 in barrels
= daily spent $ in advertising gas 2
= # of crude oil 2 barrels used to manufacture gas 3 in barrels
= # of crude oil 3 barrels used to manufacture gas 1 in barrels = daily spent $ in advertising gas 3

= # of crude oil 3 barrels used to manufacture gas 2 in barrels = + 10

= # of crude oil 3 barrels used to manufacture gas 3 in barrels = total demand of gas 1 barrels
= total demand of gas 2 barrels
= total demand of gas 3 barrels

2023 Operations Research Assignment: Suncol Oil 2

 Objective Function
• [$]
𝑅𝑒𝑣𝑒𝑛𝑢𝑒=$ 70· 𝐷1 + $ 6 0 · 𝐷2 + $ 5 0 · 𝐷3

• [$]
 + + $+ + + ) + + +

𝑍 𝑀𝐴𝑋 =𝑅𝑒𝑣𝑒𝑛𝑢𝑒 −𝐶𝑜𝑠𝑡𝑠

+ + $+ + + ) + + +

2023 Operations Research Assignment: Suncol Oil 3

 Constraints
Availability of crude oil Gasoline demand
𝐶 1 ≤5000 [ 𝐷𝑎𝑖𝑙𝑦 𝑝𝑢𝑟𝑐h𝑎𝑠𝑒 𝑙𝑖𝑚𝑖𝑡 𝑜𝑓 𝑐𝑟𝑢𝑑𝑒𝑜𝑖𝑙] 𝐺1 + 𝐺2 +𝐺 3 ≤ 14000 [ 𝐷𝑎𝑖𝑙𝑦 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑜𝑓 𝑔𝑎𝑠𝑜𝑙𝑖𝑛𝑒]
𝐶 2 ≤ 5000[ 𝐷𝑎𝑖𝑙𝑦 𝑝𝑢𝑟𝑐h𝑎𝑠𝑒 𝑙𝑖𝑚𝑖𝑡 𝑜𝑓 𝑐𝑟𝑢𝑑𝑒𝑜𝑖𝑙] 𝐺1 ≥ 3000 [𝐷𝑎𝑖𝑙𝑦 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑜𝑓 𝑔𝑎𝑠𝑜𝑙𝑖𝑛𝑒]

𝐶 3 ≤ 5000[ 𝐷𝑎𝑖𝑙𝑦 𝑝𝑢𝑟𝑐h𝑎𝑠𝑒 𝑙𝑖𝑚𝑖𝑡 𝑜𝑓 𝑐𝑟𝑢𝑑𝑒 𝑜𝑖𝑙] 𝐺 2 ≥ 2000 [𝐷𝑎𝑖𝑙𝑦 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑜𝑓 𝑔𝑎𝑠𝑜𝑙𝑖𝑛𝑒]
𝐺 3 ≥ 1000 [𝐷𝑎𝑖𝑙𝑦 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑜𝑓 𝑔𝑎𝑠𝑜𝑙𝑖𝑛𝑒]
Average Octane Rating
Sulfur
10
Content
0.5 𝑋 11 +2.0 𝑋 21 +3.0 𝑋 31 ≤ 1 %
8
0.5 𝑋 13 +2.0 𝑋 23 +3.0 𝑋 33 ≤ 1 %
6
𝑝𝑜𝑛𝑑𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑜𝑖𝑙 𝑖 Octane Advertising budget
≥
𝑡𝑜𝑡𝑎𝑙 𝑜𝑓 𝑔𝑎𝑠 𝑗 average

Non-negativity constraint
) 𝐴2 ≤ ¿
1000 − 𝐺 3
All the variables must be greater on equal than 0 𝐴3 ≤ ( )
10

2023 Operations Research Assignment: Suncol Oil 4

 Conclusion
In conclusion, we have formulated a linear programming model to help Sunco Oil maximize
its daily profits. The model considers the costs of purchasing and transforming crude oil into
gasoline, as well as the revenues from selling gasoline at different prices. It also considers the
octane rating and sulfur content requirements for each type of gasoline, the daily production
and demand constraints, and the additional demand generated from advertising.
• In order to compare the model, we developed in this presentation with the one developed
by ChatGPT, we need to consider a few factors, ChatGPT may have more advanced
algorithms and techniques to solve the problem, potentially leading to better or faster
solutions. However, our model has the advantage of being tailored specifically to Sunco
Oil's requirements, including their daily production and demand constraints, as well as the
advertising budget.
• A graphical solution cannot be made because there are more variables than humanly
graphable dimensions.

2023 Operations Research Assignment: Suncol Oil 5