Preview

Quantitative Analysis for Management

Satisfactory Essays
Open Document
Open Document
368 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Quantitative Analysis for Management
Raptor Fuels produces three grades of gasoline Regular, Premium, and Super. All of these are produced by blending two types of crude oil Crude A and Crude B. The two types of crude contain specific ingredients which help in determining the octane rating of gasoline. The important ingredients and the costs are contained in the following table:
[pic]
.:.
In order to achieve the desired octane ratings, at least 41% of Regular gasoline should be Ingredient 1; at least 44% of Premium gasoline must be Ingredient 1, and at least 48% of Super gasoline must be Ingredient 1. Due to current contract commitments, Raptor Fuels must produce as least 20,000 gallons of Regular, at least 15,000 gallons of Premium, and at least 10,000 gallons of Super. Formulate a linear program that could be used to determine how much of Crude A and Crude B should be used in each of the gasolines to meet the demands at the minimum cost. What is the minimum cost? How much of Crude A and Crude B are used in each gallon of the different types of gasoline?

SOLUTION:

Let A1 = gallons of crude A used in Regular

A2 = gallons of crude A used in Premium

A3 = gallons of crude A used in Super

B1 = gallons of crude B used in Regular

B2 = gallons of crude B used in Premium

B3 = gallons of crude B used in Super

Minimize cost = 0.42A1 + 0.42A2 + 0.42A3 + 0.47B1 + 0.47B2 + 0.47B3

Subject to

0.40A1 + 0.52B1 ( 0.41(A1 + B1)

0.40A2 + 0.52B2 ( 0.44(A2 + B2)

0.40A3 + 0.52B3 ( 0.48(A3 + B3)

A1 + B1 ( 20,000

A2 + B2 ( 15,000

A3 + B3 ( 10,000

A1, A2, A3, B1, B2, B3 ( 0

The solution is

A1 = 18,333.33 gallons of crude A used in Regular; A2 = 10,000 gallons of crude A used in Premium; A3 = 3,333.33 gallons of crude A used in Super; B1 = 1.666.67 gallons of crude B used in Regular, B2 = 5,000 gallons of crude B used in Premium; B3 = 6,666.67 gallons of crude B used in Super; total cost =
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Acct505 Case Study 2 Springfield
    • 952 Words
    • 4 Pages

    Acct505 Case Study 2 Springfield

    d. (Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers and in number of passenger train cars?…

    • 952 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    STA200 Managerial Statistics
    • 1201 Words
    • 5 Pages

    STA200 Managerial Statistics

    The higher the score, the more experience the person had when they first started. The…

    • 1201 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Managerial Analysis: BYP6-2
    • 673 Words
    • 3 Pages

    Managerial Analysis: BYP6-2

    Compute the break-even point in sales dollars under each approach. Discuss the implications of your findings.…

    • 673 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Busn312 Hw3A
    • 727 Words
    • 3 Pages

    Busn312 Hw3A

    Linear programming problems have a.|linear objective functions, non-linear constraints.| b.|non-linear objective functions, non-linear constraints.| c.|non-linear objective functions, linear constraints.| d.|linear objective functions, linear constraints.| ____C 7. The first step in formulating a linear programming problem is a.|Identify any upper or lower bounds on the decision variables.| b.|State the constraints as linear combinations of the decision variables.| c.|Understand the problem.| d.|Identify the decision variables.| e.|State the objective…

    • 727 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Managerial Accounting 505 Case Study Week 3
    • 1071 Words
    • 5 Pages

    Managerial Accounting 505 Case Study Week 3

    Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers and in number of passenger train cars?…

    • 1071 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Diagnosis-Related Groups 'Break-Even Analysis'
    • 745 Words
    • 3 Pages

    Diagnosis-Related Groups 'Break-Even Analysis'

    Getwell Clinic on Beach Street concentrates care and treatment of three different types of patients listed as DRG-M, DRG-J, and DRG-P. Dr. Barkley is the new director of the satellite office and has requested that statistical break-even points be completed for each DRG. He would also like information on which DRG is the most profitable to promote in the growing practice.…

    • 745 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    GM 533 Managerial Statistics Course Project
    • 1409 Words
    • 6 Pages

    GM 533 Managerial Statistics Course Project

    There are several perceptions about the causes of property crime in the United States. Many believe that the degree of property crime is determined by various factors including per capita income for each state, percentage of public aid recipients, high school dropout rates and many more. This project seeks to provide evidence for or against some of these common perceptions about property crime. Specifically it seeks to answer the questions: are crime rates higher in urban than rural areas? Does unemployment or education level contribute to property crime rates? Other independent variables that will be studied include public aid for families with children, population density, and average precipitation in the major city in each state.…

    • 1409 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Bridgeton Paper
    • 1658 Words
    • 7 Pages

    Bridgeton Paper

    5. Assume that the selling prices, volumes, and material costs for the 1991 model year will not change for fuel tanks and doors produced by the ACF of Bridgeton Industries. Assume also that if manifolds are produced, their selling prices, volume, and material costs will not change either.…

    • 1658 Words
    • 7 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Acct 505 Case Study 1: Break-Even Point in Passengers and Revenues Per Month
    • 946 Words
    • 4 Pages

    Acct 505 Case Study 1: Break-Even Point in Passengers and Revenues Per Month

    d. (Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers and in number of passenger train cars?…

    • 946 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Statistics for Managers
    • 948 Words
    • 4 Pages

    Statistics for Managers

    0.01 2.326 significant 0.001 3.09 not significant C. Using the information in part b, calculate the p-value and use it to test H0 versus Ha at each of .10, .05, .01 and .001. The p-value is 0.0025. This being stated, the result is significant at 0.10, 0.05, and 0.01, because p < alpha. At 0.001, the result is not significant, because p > alpha How much evidence is there that the mean composite satisfaction rating exceeds 42? We can be at least 99% certain, but not as much as 99.9% certain.…

    • 948 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Statistical Analysis for Managers
    • 641 Words
    • 3 Pages

    Statistical Analysis for Managers

    The life expectancy in the United States is 75 with a standard deviation of 7 years. A random sample of 49 individuals is selected.…

    • 641 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Quantitative Analysis for Football Managers
    • 1140 Words
    • 5 Pages

    Quantitative Analysis for Football Managers

    This article appeared in Corporate page of The Edge Malaysia, Issue 814, July 12 - 18, 2010…

    • 1140 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Quantitative Research
    • 1088 Words
    • 4 Pages

    Quantitative Research

    The disparities in the U.S. court system regarding paternity of low-income individuals has extreme effects on whether children would ever know their fathers, but they also lead to men being involuntarily held financially or legally responsible for children they did not biologically father; a burden that has disproportionate negative effects on a man with low-income. Dr. Vincent Miller contends "Nearly 30% of the tested paternity cases in our laboratory result in an exclusion of the "alleged father" presented as the biological father." (2010). The mere allegation of a man’s paternity, results in the U.S. court system entering financially, as well as…

    • 1088 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Statistics for Management
    • 5001 Words
    • 21 Pages

    Statistics for Management

    A: Correlation & Regression is a statistical tools, are used to measure strength of relationships between two variables.…

    • 5001 Words
    • 21 Pages
    Powerful Essays
    Read More

Related Topics