75809_1_assignment0

75809_1_assignment0 - Optimisation& Decision Making –...

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Unformatted text preview: Optimisation & Decision Making – ENGM072 1/2 Optimisation & Decision Making – ENGM072 Assignment 1 a) An oil company produces a single type of petrol and wishes to minimise the production cost which is a complex relation between the transportation cost of crude oil ( g G ), cost of crude oil storage ( g ¡ ) and refining ( g ¢ ), for which the cost per tonne of petrol is given as £ ¤ g G ¡ ¥ g ¡ ¡ ¥ g ¢ ¡ ¦ g G ¦ g ¡ ¦ g ¢ ¥ uU§¨© b) Also, the company has the shipment requirements for produced petrol as in the Table 1. Table 1 Shipment requirements Petrol Required shipment [t] June 20,000 July 40,000 August 30,000 The monthly production capacity is 40,000 tonnes of petrol per month at a minimum cost per tonne of petrol obtained in 1a. Also, the cost of storage of petrol is £4 per tonne per month and it is calculated on the amount of petrol that is in storage at the end of each month. The company does not have any beginning amount of petrol and should not have any petrol left in storage after the...
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75809_1_assignment0 - Optimisation& Decision Making –...

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