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OilCo is building a refinery to produce four product: diesel, gasoline, lubricants, and jet fuel.
OilCo is building a refinery to produce four product: diesel, gasoline, lubricants, and jet fuel.The minimum demand (in bbl/day) for each of these product is 14,000, 30,000, 10,000, and 8000 , respectively. Iran and dubai are under contract to ship crude to OilCo because of the production quotas specified by OPEC (Organization of Petroleum Exporting Countries) the new refinery can receive at least 40% of its crude from Iran and the remaining amount from Dubai OilCo predicts that the demand and the crude oil quotas will remain steady over the next ten years. The specifications of the two crude oils lead to different product mixes: one barrel of lran crude yields .2 bbl of diesel .25 bbl of gasoline, .1,.6,.15 and .1, respectively oilco needs to determine the minimum capacity of the refinery (in bbl/day)
