Accent Oil, located on the Island of Easter, has a capacity of 1,500,000 bbl of crude oil per day. The final products from the refinery include three types of unleaded gasoline with different octane numbers (ON): regular with ON = 87, premium with ON = 89, and super with ON = 92. The refining process encompasses three stages:
(1) a distillation tower that produces feedstock (ON = 82) at the rate of .2 bbl per bbl of crude oil,
(2) a cracker unit that produces gasoline stock (ON = 98) by using a portion of the feedstock produced from the distillation tower at the rate of .5 bbl per bbl of feedstock, and
(3) a blender unit that blends the gasoline stock from the cracker unit and the feedstock from the distillation tower.
The company estimates the net profit per barrel of the three types of gasoline to be $6.70, $7.20, and $8.10, respectively. The input capacity of the cracker unit is 200,000 barrels of feedstock a day. The demand limits for regular, premium, and super gasoline are 50,000, 30,000, and 40,000 barrels per day.
A model for determining the optimum production schedule for the refinery can be developed.
Download the solution files here.