Assignment 2

# Assignment 2 - Damian Illing EBGN 525 Homework#2 1 Sunco...

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Damian Illing EBGN 525 Homework #2 1. Sunco Oil a. Solver Information i. B56 ii. B24:D26 iii. Constraints 1. Oil consumption E24:E26<=G24:G26 2. Sulfur Content Constraints B48:D48<=B50:D50 3. Octane Constraints B43:D43<=B45:D45 4. Production Constraints B40<=D40 5. B36:D36 = B34:D34 b. Cells i. B50 = sumproduct(E24:E26, B2:B4) ii. B51 = [B7*B40] iii. B52 = sum(B32:D32) iv. B53 = sumproduct(B36:D36, D3:F3) v. B54 = B53-sum(B50:B52) c. B33=B32*B\$10\$ d. B40 = sum(B36:BD36) e. B48 = sumproduct(B24:B26, E\$18\$:E\$20\$)

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f. In the gas demand constraint, if the constant read ΣX i1 from i=1 to 3 >= 3000+10*A1, the solver will always try to maximize the left hand side and minimize the right hand side subject to all other constraints. Therefore, the value of A2 would always be pushed to its minimum value (0), while the left hand side, the demand for that gas, would be inflated. This would mean that extra demand would be stimulated for free. This does not make sense. The optimization would not take into account the opportunity or benefits of advertising. Advertising will always be pushed to zero and the optimization will be done with just original demand. g. If the operator is X Σ i1 from i=1 to 3 <= 3000 +10*A1, there will be no minimum amount to produce to satisfy demand. This is contrary to the problem statement because it states that the company will ALWAYS supply the consumers at least the nominal amounts stated in the problem. In this situation, because gas 3 is least profitable, they will sell none of it to make more profit on gas 1 and gas 2. Therefore they will violate the rule of always supplying the nominal amount.
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