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Where To Buy Oil To Minimize Cost

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August 26th, 2024
Home Uncategorized Where To Buy Oil To Minimize Cost
Objective Brisneyland Oil Refinery needs crude oil to make petrol.  The company has won the consulting contract to choose where to buy oil for the next 3 months.  The aim is to minimise cost  by selecting appropriate places from where it can buy oil.
Henec, the objective is to minimize the cost considering all the constraints avaliable.
This excel file consist of both the original model as well as modified one. The original model is termed as Initial Model and the modified one is termed as modified model. Answer report 1 is associated with Initial model.		  
 
 
 
 
 
 
 
   
Initial Model Explanation  
  Given Information for Brisneyland Oil Refinery   
  Constraints for Brisneyland Oil Refinery   
  Workings  
  Cost Calculations  
   
Modified Model Explanation  
  Given Information for Brisneyland Oil Refinery   
  Constraints for Brisneyland Oil Refinery   
  Workings  
  Cost Calculations  
   
Modified Model Assumptions  
Assumption 1 Storage capacity improved to 11000000 from 9000000 and additional cost for increase capacity is $2500000  
Assumption 2 After negotiation with Donald Trump, there will be maximum 2 ships from Maracaibo per month with additional cost of $175000 per ship per month                    
   
Initial cost $1,73,31,98,050.00              
Additional Cost $40,75,000.00              
Cost after modification $1,51,43,42,580.00              
Remarks: Even though, modified model needs additional cost of $4075000.00, there is a benefit in terms of cost reduction is $218855470.00  
   
                       
                       
                       
                       
                       
                       
                       
Engine: GRG Nonlinear                  
Solution Time: 61.526 Seconds.                
Iterations: 9 Subproblems: 166                  
                       
Max Time Unlimited,  Iterations Unlimited, Precision 0.000001, Use Automatic Scaling        
 Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds      
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%          
                       
                       
Cell Name Original Value Final Value                
$J$44 Total Cost Cost Feb 2018 ######## $1,73,31,98,050.00                
                       
                       
                       
Cell Name Original Value Final Value Integer              
$J$14 West Texas Panamax 0 0 Integer              
$K$14 West Texas Suezmax 0 0 Integer              
$L$14 West Texas TI Class 0 0 Integer              
$J$15 Long Beach Panamax 0 0 Integer              
$K$15 Long Beach Suezmax 0 0 Integer              
$L$15 Long Beach TI Class 0 0 Integer              
$J$16 Brent  Panamax 0 0 Integer              
$K$16 Brent  Suezmax 0 0 Integer              
$L$16 Brent  TI Class 0 0 Integer              
$J$17 Maracaibo Panamax 0 0 Integer              
$K$17 Maracaibo Suezmax 0 0 Integer              
$L$17 Maracaibo TI Class 1 1 Integer              
$J$18 Aceh Panamax 0 0 Integer              
$K$18 Aceh Suezmax 0 0 Integer              
$L$18 Aceh TI Class 1 1 Integer              
$J$19 Dharhan  Panamax 0 0 Integer              
$K$19 Dharhan  Suezmax 3 3 Integer              
$L$19 Dharhan  TI Class 0 0 Integer              
$J$5 West Texas Panamax 1 1 Integer              
$K$5 West Texas Suezmax 0 0 Integer              
$L$5 West Texas TI Class 0 0 Integer              
$J$6 Long Beach Panamax 0 0 Integer              
$K$6 Long Beach Suezmax 1 1 Integer              
$L$6 Long Beach TI Class 0 0 Integer              
$J$7 Brent  Panamax 1 1 Integer              
$K$7 Brent  Suezmax 0 0 Integer              
$L$7 Brent  TI Class 0 0 Integer              
$J$8 Maracaibo Panamax 1 1 Integer              
$K$8 Maracaibo Suezmax 0 0 Integer              
$L$8 Maracaibo TI Class 0 0 Integer              
$J$9 Aceh Panamax 1 1 Integer              
$K$9 Aceh Suezmax 0 0 Integer              
$L$9 Aceh TI Class 1 1 Integer              
$J$10 Dharhan  Panamax 2 2 Integer              
$K$10 Dharhan  Suezmax 0 0 Integer              
$L$10 Dharhan  TI Class 0 0 Integer              
$J$23 West Texas Panamax 0 0 Integer              
$K$23 West Texas Suezmax 0 0 Integer              
$L$23 West Texas TI Class 0 0 Integer              
$J$24 Long Beach Panamax 0 0 Integer              
$K$24 Long Beach Suezmax 0 0 Integer              
$L$24 Long Beach TI Class 0 0 Integer              
$J$25 Brent  Panamax 0 0 Integer              
$K$25 Brent  Suezmax 0 0 Integer              
$L$25 Brent  TI Class 0 0 Integer              
$J$26 Maracaibo Panamax 0 0 Integer              
$K$26 Maracaibo Suezmax 0 0 Integer              
$L$26 Maracaibo TI Class 1 1 Integer              
$J$27 Aceh Panamax 3 3 Integer              
$K$27 Aceh Suezmax 0 0 Integer              
$L$27 Aceh TI Class 0 0 Integer              
$J$28 Dharhan  Panamax 3 3 Integer              
$K$28 Dharhan  Suezmax 1 1 Integer              
$L$28 Dharhan  TI Class 0 0 Integer              
                       
                       
                       
Cell Name Cell Value Formula Status Slack            
$J$32 Total Octane Month of February 16,13,500 $J$32>=$J$33 Not Binding 1,13,500            
$K$32 Total Octane Month of March 17,91,500 $K$32>=$K$33 Not Binding 2,91,500            
$L$32 Total Octane Month of April 16,15,000 $L$32>=$L$33 Not Binding 1,15,000            
$M$17 Maracaibo 1 $M$17=1 Binding 0            
$M$14 West Texas 0 $M$14<=4 Not Binding 4            
$M$15 Long Beach 0 $M$15<=4 Not Binding 4            
$M$16 Brent  0 $M$16<=4 Not Binding 4            
$M$18 Aceh 1 $M$18<=4 Not Binding 3            
$M$19 Dharhan  3 $M$19<=4 Not Binding 1            
$C$32 Total purchase + Inventory Month of February 8050000 $C$32<=$C$36 Not Binding 950000            
$D$32 Total purchase + Inventory Month of March 8950000 $D$32<=$D$36 Not Binding 50000            
$E$32 Total purchase + Inventory Month of April 9000000 $E$32<=$E$36 Binding 0            
$M$27 Aceh 3 $M$27<=4 Not Binding 1            
$M$28 Dharhan  4 $M$28<=4 Binding 0            
$M$26 Maracaibo 1 $M$26=1 Binding 0            
$M$23 West Texas 0 $M$23<=4 Not Binding 4            
$M$24 Long Beach 0 $M$24<=4 Not Binding 4            
$M$25 Brent  0 $M$25<=4 Not Binding 4            
$M$9 Aceh 2 $M$9<=4 Not Binding 2            
$M$10 Dharhan  2 $M$10<=4 Not Binding 2            
$M$8 Maracaibo 1 $M$8=1 Binding 0            
$M$5 West Texas 1 $M$5<=4 Not Binding 3            
$M$6 Long Beach 1 $M$6<=4 Not Binding 3            
$M$7 Brent  1 $M$7<=4 Not Binding 3            
$E$34 Avaialble oil at the end of month Month of April 1000000 $E$34>=$E$37 Binding 0            
$C$32 Total purchase + Inventory Month of February 8050000 $C$32>=$C$35 Not Binding 50000            
$D$32 Total purchase + Inventory Month of March 8950000 $D$32>=$D$35 Not Binding 950000            
$E$32 Total purchase + Inventory Month of April 9000000 $E$32>=$E$35 Not Binding 1000000            
$C$34 Avaialble oil at the end of month Month of February 50000 $C$34>=0 Not Binding 50000            
$D$34 Avaialble oil at the end of month Month of March 950000 $D$34>=0 Not Binding 950000            
$E$34 Avaialble oil at the end of month Month of April 1000000 $E$34>=0 Not Binding 1000000            
$J$14 West Texas Panamax 0 $J$14>=0 Binding 0            
$K$14 West Texas Suezmax 0 $K$14>=0 Binding 0            
$L$14 West Texas TI Class 0 $L$14>=0 Binding 0            
$J$15 Long Beach Panamax 0 $J$15>=0 Binding 0            
$K$15 Long Beach Suezmax 0 $K$15>=0 Binding 0            
$L$15 Long Beach TI Class 0 $L$15>=0 Binding 0            
$J$16 Brent  Panamax 0 $J$16>=0 Binding 0            
$K$16 Brent  Suezmax 0 $K$16>=0 Binding 0            
$L$16 Brent  TI Class 0 $L$16>=0 Binding 0            
$J$17 Maracaibo Panamax 0 $J$17>=0 Binding 0            
$K$17 Maracaibo Suezmax 0 $K$17>=0 Binding 0            
$L$17 Maracaibo TI Class 1 $L$17>=0 Not Binding 1            
$J$18 Aceh Panamax 0 $J$18>=0 Binding 0            
$K$18 Aceh Suezmax 0 $K$18>=0 Binding 0            
$L$18 Aceh TI Class 1 $L$18>=0 Not Binding 1            
$J$19 Dharhan  Panamax 0 $J$19>=0 Binding 0            
$K$19 Dharhan  Suezmax 3 $K$19>=0 Not Binding 3            
$L$19 Dharhan  TI Class 0 $L$19>=0 Binding 0            
$K$14 West Texas Suezmax 0 $K$14=0 Binding 0            
$L$14 West Texas TI Class 0 $L$14=0 Binding 0            
$L$16 Brent  TI Class 0 $L$16=0 Binding 0            
$L$25 Brent  TI Class 0 $L$25=0 Binding 0            
$L$23 West Texas TI Class 0 $L$23=0 Binding 0            
$L$7 Brent  TI Class 0 $L$7=0 Binding 0            
$L$5 West Texas TI Class 0 $L$5=0 Binding 0            
$K$23 West Texas Suezmax 0 $K$23=0 Binding 0            
$K$5 West Texas Suezmax 0 $K$5=0 Binding 0            
$J$23 West Texas Panamax 0 $J$23>=0 Binding 0            
$K$23 West Texas Suezmax 0 $K$23>=0 Binding 0            
$L$23 West Texas TI Class 0 $L$23>=0 Binding 0            
$J$24 Long Beach Panamax 0 $J$24>=0 Binding 0            
$K$24 Long Beach Suezmax 0 $K$24>=0 Binding 0            
$L$24 Long Beach TI Class 0 $L$24>=0 Binding 0            
$J$25 Brent  Panamax 0 $J$25>=0 Binding 0            
$K$25 Brent  Suezmax 0 $K$25>=0 Binding 0            
$L$25 Brent  TI Class 0 $L$25>=0 Binding 0            
$J$26 Maracaibo Panamax 0 $J$26>=0 Binding 0            
$K$26 Maracaibo Suezmax 0 $K$26>=0 Binding 0            
$L$26 Maracaibo TI Class 1 $L$26>=0 Not Binding 1            
$J$27 Aceh Panamax 3 $J$27>=0 Not Binding 3            
$K$27 Aceh Suezmax 0 $K$27>=0 Binding 0            
$L$27 Aceh TI Class 0 $L$27>=0 Binding 0            
$J$28 Dharhan  Panamax 3 $J$28>=0 Not Binding 3            
$K$28 Dharhan  Suezmax 1 $K$28>=0 Not Binding 1            
$L$28 Dharhan  TI Class 0 $L$28>=0 Binding 0            
$J$5 West Texas Panamax 1 $J$5>=0 Not Binding 1            
$K$5 West Texas Suezmax 0 $K$5>=0 Binding 0            
$L$5 West Texas TI Class 0 $L$5>=0 Binding 0            
$J$6 Long Beach Panamax 0 $J$6>=0 Binding 0            
$K$6 Long Beach Suezmax 1 $K$6>=0 Not Binding 1            
$L$6 Long Beach TI Class 0 $L$6>=0 Binding 0            
$J$7 Brent  Panamax 1 $J$7>=0 Not Binding 1            
$K$7 Brent  Suezmax 0 $K$7>=0 Binding 0            
$L$7 Brent  TI Class 0 $L$7>=0 Binding 0            
$J$8 Maracaibo Panamax 1 $J$8>=0 Not Binding 1            
$K$8 Maracaibo Suezmax 0 $K$8>=0 Binding 0            
$L$8 Maracaibo TI Class 0 $L$8>=0 Binding 0            
$J$9 Aceh Panamax 1 $J$9>=0 Not Binding 1            
$K$9 Aceh Suezmax 0 $K$9>=0 Binding 0            
$L$9 Aceh TI Class 1 $L$9>=0 Not Binding 1            
$J$10 Dharhan  Panamax 2 $J$10>=0 Not Binding 2            
$K$10 Dharhan  Suezmax 0 $K$10>=0 Binding 0            
$L$10 Dharhan  TI Class 0 $L$10>=0 Binding 0            
$J$14:$L$19=Integer                    
$J$23:$L$28=Integer                    
$J$5:$L$10=Integer                    
                       
                       
Given Information for Brisneyland Oil Refinery    Constraints for Brisneyland Oil Refinery 
      Feb shipping  
Kind of oil Cost Feb 2018 Cost Mar 2018 Cost Apr 2018 Shipping Distance (nautical miles)     Ship can be use Panamax Suezmax TI Class  
West Texas intermediate $63.50 $65.00 $66.00 9,283     West Texas 1 0 0 1
Long Beach medium $65.50 $67.50 $68.00 6,287     Long Beach 0 1 0 1
Brent light sweet $69.50 $71.00 $73.50 12,090     Brent  1 0 0 1
Maracaibo heavy $54.50 $57.50 $61.50 4,680     Maracaibo 1 0 0 1
Aceh medium $63.50 $64.00 $68.50 3,828     Aceh 1 0 1 2
Dharhan light sweet $67.00 $69.50 $70.50 7,453     Dharhan  2 0 0 2
                       
          Mar Shipping  
Kind of oil tanker Capacity (barrels) Cost per barrel per nautical mile         Ship can be use Panamax Suezmax TI Class  
Panamax 700000 $0.0011         West Texas 0 0 0 0
Suezmax 1200000 $0.0009         Long Beach 0 0 0 0
TI Class 2650000 $0.0005         Brent  0 0 0 0
              Maracaibo 0 0 1 1
            Aceh 0 0 1 1
Kind of oil Octane           Dharhan  0 3 0 3
Sweet light (or light sweet) 24%                    
Intermediate or Medium 19%           Apr Shipping  
Heavy 16%           Ship can be use Panamax Suezmax TI Class  
              West Texas 0 0 0 0
              Long Beach 0 0 0 0
              Brent  0 0 0 0
              Maracaibo 0 0 1 1
Constraints for Brisneyland Oil Refinery        Aceh 3 0 0 3
Purchase and Inventory Constraints       Dharhan  3 1 0 4
Barrels Month of February Month of March Month of April                
Oil needs to purchase 8050000 8900000 8050000       Refine Process  
Inventory 0 50000 950000         Month of February Month of March Month of April  
Total purchase + Inventory 8050000 8950000 9000000       Total Octane 16,13,500 17,91,500 16,15,000  
Oil used for refining 8000000 8000000 8000000       Limit 15,00,000 15,00,000 15,00,000  
Avaialble oil at the end of month 50000 950000 1000000                
Minimum Requirement 8000000 8000000 8000000                
Maximum Storage Capacity 9000000 9000000 9000000          Cost of Oil Shipping  Cost
Avaialble oil at the end of April     1000000       Kind of oil Cost Feb 2018 Cost Mar 2018 Cost Apr 2018  
              West Texas intermediate ######### $0.00 $0.00 #########
Purchase Details Month of February Total Units     Long Beach medium ######### $0.00 $0.00 #########
Ship can be use Panamax Suezmax TI Class       Brent light sweet ######### $0.00 $0.00 #########
West Texas intermediate 700000 0 0 700000     Maracaibo heavy ######### ######### ######### #########
Long Beach medium 0 1200000 0 1200000     Aceh medium ######### ######### ######### #########
Brent light sweet 700000 0 0 700000     Dharhan light sweet ######### ######### ######### #########
Maracaibo heavy 700000 0 0 700000     Total Cost $1,73,31,98,050.00
Aceh medium 700000 0 2650000 3350000              
Dharhan light sweet 1400000 0 0 1400000              
Sweet light (or light sweet) 2100000                
Intermediate or Medium 5250000                
Heavy 700000                
Total 8050000                
                       
                       
Purchase Details Month of March Total Units              
Ship can be use Panamax Suezmax TI Class                
West Texas intermediate 0 0 0 0              
Long Beach medium 0 0 0 0              
Brent light sweet 0 0 0 0              
Maracaibo heavy 0 0 2650000 2650000              
Aceh medium 0 0 2650000 2650000              
Dharhan light sweet 0 3600000 0 3600000              
Sweet light (or light sweet) 3600000                
Intermediate or Medium 2650000                
Heavy 2650000                
Total 8900000                
                       
                       
Purchase Details Month of April Total Units              
Ship can be use Panamax Suezmax TI Class                
West Texas intermediate 0 0 0 0              
Long Beach medium 0 0 0 0              
Brent light sweet 0 0 0 0              
Maracaibo heavy 0 0 2650000 2650000              
Aceh medium 2100000 0 0 2100000              
Dharhan light sweet 2100000 1200000 0 3300000              
Sweet light (or light sweet) 3300000                
Intermediate or Medium 2100000                
Heavy 2650000                
Total 8050000                
                       
                       
                       
                       
                       
                       
                       
                       
Engine: GRG Nonlinear                  
Solution Time: 60.341 Seconds.                
Iterations: 19 Subproblems: 167                
                       
Max Time Unlimited,  Iterations Unlimited, Precision 0.000001, Use Automatic Scaling        
 Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds      
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 0%          
                       
                       
Cell Name Original Value Final Value                
$J$47 Revised Total cost Cost Feb 2018 ######## $1,51,43,42,580.00                
                       
                       
                       
Cell Name Original Value Final Value Integer              
$J$14 West Texas Panamax 0 0 Integer              
$K$14 West Texas Suezmax 0 0 Integer              
$L$14 West Texas TI Class 0 0 Integer              
$J$15 Long Beach Panamax 0 0 Integer              
$K$15 Long Beach Suezmax 0 0 Integer              
$L$15 Long Beach TI Class 0 0 Integer              
$J$16 Brent  Panamax 0 0 Integer              
$K$16 Brent  Suezmax 0 0 Integer              
$L$16 Brent  TI Class 0 0 Integer              
$J$17 Maracaibo Panamax 0 0 Integer              
$K$17 Maracaibo Suezmax 0 0 Integer              
$L$17 Maracaibo TI Class 1 0 Integer              
$J$18 Aceh Panamax 0 0 Integer              
$K$18 Aceh Suezmax 0 0 Integer              
$L$18 Aceh TI Class 1 0 Integer              
$J$19 Dharhan  Panamax 0 0 Integer              
$K$19 Dharhan  Suezmax 3 3 Integer              
$L$19 Dharhan  TI Class 0 1 Integer              
$J$5 West Texas Panamax 1 0 Integer              
$K$5 West Texas Suezmax 0 0 Integer              
$L$5 West Texas TI Class 0 0 Integer              
$J$6 Long Beach Panamax 0 0 Integer              
$K$6 Long Beach Suezmax 1 0 Integer              
$L$6 Long Beach TI Class 0 0 Integer              
$J$7 Brent  Panamax 1 0 Integer              
$K$7 Brent  Suezmax 0 0 Integer              
$L$7 Brent  TI Class 0 0 Integer              
$J$8 Maracaibo Panamax 1 0 Integer              
$K$8 Maracaibo Suezmax 0 0 Integer              
$L$8 Maracaibo TI Class 0 2 Integer              
$J$9 Aceh Panamax 1 0 Integer              
$K$9 Aceh Suezmax 0 2 Integer              
$L$9 Aceh TI Class 1 1 Integer              
$J$10 Dharhan  Panamax 2 0 Integer              
$K$10 Dharhan  Suezmax 0 0 Integer              
$L$10 Dharhan  TI Class 0 0 Integer              
$J$23 West Texas Panamax 0 0 Integer              
$K$23 West Texas Suezmax 0 0 Integer              
$L$23 West Texas TI Class 0 0 Integer              
$J$24 Long Beach Panamax 0 0 Integer              
$K$24 Long Beach Suezmax 0 0 Integer              
$L$24 Long Beach TI Class 0 1 Integer              
$J$25 Brent  Panamax 0 0 Integer              
$K$25 Brent  Suezmax 0 0 Integer              
$L$25 Brent  TI Class 0 0 Integer              
$J$26 Maracaibo Panamax 0 1 Integer              
$K$26 Maracaibo Suezmax 0 0 Integer              
$L$26 Maracaibo TI Class 1 0 Integer              
$J$27 Aceh Panamax 3 3 Integer              
$K$27 Aceh Suezmax 0 0 Integer              
$L$27 Aceh TI Class 0 0 Integer              
$J$28 Dharhan  Panamax 3 0 Integer              
$K$28 Dharhan  Suezmax 1 3 Integer              
$L$28 Dharhan  TI Class 0 0 Integer              
                       
                       
                       
Cell Name Cell Value Formula Status Slack            
$C$32 Total purchase + Inventory Month of February 10350000 $C$32>=$C$35 Not Binding 2350000            
$D$32 Total purchase + Inventory Month of March 8600000 $D$32>=$D$35 Not Binding 600000            
$E$32 Total purchase + Inventory Month of April 9650000 $E$32>=$E$35 Not Binding 1650000            
$E$34 Avaialble oil at the end of month Month of April 1650000 $E$34>=$E$37 Not Binding 650000            
$M$17 Maracaibo 0 $M$17<=2 Not Binding 2            
$M$26 Maracaibo 1 $M$26<=2 Not Binding 1            
$M$5 West Texas 0 $M$5<=4 Not Binding 4            
$M$6 Long Beach 0 $M$6<=4 Not Binding 4            
$M$7 Brent  0 $M$7<=4 Not Binding 4            
$M$8 Maracaibo 2 $M$8<=2 Binding 0            
$M$9 Aceh 3 $M$9<=4 Not Binding 1            
$M$10 Dharhan  0 $M$10<=4 Not Binding 4            
$M$23 West Texas 0 $M$23<=4 Not Binding 4            
$M$24 Long Beach 1 $M$24<=4 Not Binding 3            
$M$25 Brent  0 $M$25<=4 Not Binding 4            
$M$27 Aceh 3 $M$27<=4 Not Binding 1            
$M$28 Dharhan  3 $M$28<=4 Not Binding 1            
$C$34 Avaialble oil at the end of month Month of February 2350000 $C$34>=0 Not Binding 2350000            
$D$34 Avaialble oil at the end of month Month of March 600000 $D$34>=0 Not Binding 600000            
$E$34 Avaialble oil at the end of month Month of April 1650000 $E$34>=0 Not Binding 1650000            
$M$18 Aceh 0 $M$18<=4 Not Binding 4            
$M$19 Dharhan  4 $M$19<=4 Binding 0            
$M$14 West Texas 0 $M$14<=4 Not Binding 4            
$M$15 Long Beach 0 $M$15<=4 Not Binding 4            
$M$16 Brent  0 $M$16<=4 Not Binding 4            
$C$32 Total purchase + Inventory Month of February 10350000 $C$32<=$C$36 Not Binding 650000            
$D$32 Total purchase + Inventory Month of March 8600000 $D$32<=$D$36 Not Binding 2400000            
$E$32 Total purchase + Inventory Month of April 9650000 $E$32<=$E$36 Not Binding 1350000            
$J$32 Total Octane Month of February 18,07,500 $J$32>=$J$33 Not Binding 3,07,500            
$K$32 Total Octane Month of March 15,00,000 $K$32>=$K$33 Binding 0            
$L$32 Total Octane Month of April 18,78,500 $L$32>=$L$33 Not Binding 3,78,500            
$J$23 West Texas Panamax 0 $J$23>=0 Binding 0            
$K$23 West Texas Suezmax 0 $K$23>=0 Binding 0            
$L$23 West Texas TI Class 0 $L$23>=0 Binding 0            
$J$24 Long Beach Panamax 0 $J$24>=0 Binding 0            
$K$24 Long Beach Suezmax 0 $K$24>=0 Binding 0            
$L$24 Long Beach TI Class 1 $L$24>=0 Not Binding 1            
$J$25 Brent  Panamax 0 $J$25>=0 Binding 0            
$K$25 Brent  Suezmax 0 $K$25>=0 Binding 0            
$L$25 Brent  TI Class 0 $L$25>=0 Binding 0            
$J$26 Maracaibo Panamax 1 $J$26>=0 Binding 0            
$K$26 Maracaibo Suezmax 0 $K$26>=0 Binding 0            
$L$26 Maracaibo TI Class 0 $L$26>=0 Binding 0            
$J$27 Aceh Panamax 3 $J$27>=0 Not Binding 3            
$K$27 Aceh Suezmax 0 $K$27>=0 Binding 0            
$L$27 Aceh TI Class 0 $L$27>=0 Binding 0            
$J$28 Dharhan  Panamax 0 $J$28>=0 Binding 0            
$K$28 Dharhan  Suezmax 3 $K$28>=0 Binding 0            
$L$28 Dharhan  TI Class 0 $L$28>=0 Binding 0            
$L$5 West Texas TI Class 0 $L$5=0 Binding 0            
$K$14 West Texas Suezmax 0 $K$14=0 Binding 0            
$K$23 West Texas Suezmax 0 $K$23=0 Binding 0            
$L$23 West Texas TI Class 0 $L$23=0 Binding 0            
$L$7 Brent  TI Class 0 $L$7=0 Binding 0            
$L$14 West Texas TI Class 0 $L$14=0 Binding 0            
$L$16 Brent  TI Class 0 $L$16=0 Binding 0            
$K$5 West Texas Suezmax 0 $K$5=0 Binding 0            
$L$25 Brent  TI Class 0 $L$25=0 Binding 0            
$J$5 West Texas Panamax 0 $J$5>=0 Binding 0            
$K$5 West Texas Suezmax 0 $K$5>=0 Binding 0            
$L$5 West Texas TI Class 0 $L$5>=0 Binding 0            
$J$6 Long Beach Panamax 0 $J$6>=0 Binding 0            
$K$6 Long Beach Suezmax 0 $K$6>=0 Binding 0            
$L$6 Long Beach TI Class 0 $L$6>=0 Binding 0            
$J$7 Brent  Panamax 0 $J$7>=0 Binding 0            
$K$7 Brent  Suezmax 0 $K$7>=0 Binding 0            
$L$7 Brent  TI Class 0 $L$7>=0 Binding 0            
$J$8 Maracaibo Panamax 0 $J$8>=0 Binding 0            
$K$8 Maracaibo Suezmax 0 $K$8>=0 Binding 0            
$L$8 Maracaibo TI Class 2 $L$8>=0 Binding 0            
$J$9 Aceh Panamax 0 $J$9>=0 Binding 0            
$K$9 Aceh Suezmax 2 $K$9>=0 Binding 0            
$L$9 Aceh TI Class 1 $L$9>=0 Binding 0            
$J$10 Dharhan  Panamax 0 $J$10>=0 Binding 0            
$K$10 Dharhan  Suezmax 0 $K$10>=0 Binding 0            
$L$10 Dharhan  TI Class 0 $L$10>=0 Binding 0            
$J$14 West Texas Panamax 0 $J$14>=0 Binding 0            
$K$14 West Texas Suezmax 0 $K$14>=0 Binding 0            
$L$14 West Texas TI Class 0 $L$14>=0 Binding 0            
$J$15 Long Beach Panamax 0 $J$15>=0 Binding 0            
$K$15 Long Beach Suezmax 0 $K$15>=0 Binding 0            
$L$15 Long Beach TI Class 0 $L$15>=0 Binding 0            
$J$16 Brent  Panamax 0 $J$16>=0 Binding 0            
$K$16 Brent  Suezmax 0 $K$16>=0 Binding 0            
$L$16 Brent  TI Class 0 $L$16>=0 Binding 0            
$J$17 Maracaibo Panamax 0 $J$17>=0 Binding 0            
$K$17 Maracaibo Suezmax 0 $K$17>=0 Binding 0            
$L$17 Maracaibo TI Class 0 $L$17>=0 Binding 0            
$J$18 Aceh Panamax 0 $J$18>=0 Binding 0            
$K$18 Aceh Suezmax 0 $K$18>=0 Binding 0            
$L$18 Aceh TI Class 0 $L$18>=0 Binding 0            
$J$19 Dharhan  Panamax 0 $J$19>=0 Binding 0            
$K$19 Dharhan  Suezmax 3 $K$19>=0 Not Binding 3            
$L$19 Dharhan  TI Class 1 $L$19>=0 Not Binding 1            
$J$5:$L$10=Integer                    
$J$14:$L$19=Integer                    
$J$23:$L$28=Integer                    
                       
Given Information for Brisneyland Oil Refinery    Constraints for Brisneyland Oil Refinery 
      Feb shipping  
Kind of oil Cost Feb 2018 Cost Mar 2018 Cost Apr 2018 Shipping Distance (nautical miles)     Ship can be use Panamax Suezmax TI Class  
West Texas intermediate $63.50 $65.00 $66.00 9,283     West Texas 0 0 0 0
Long Beach medium $65.50 $67.50 $68.00 6,287     Long Beach 0 0 0 0
Brent light sweet $69.50 $71.00 $73.50 12,090     Brent  0 0 0 0
Maracaibo heavy $54.50 $57.50 $61.50 4,680     Maracaibo 0 0 2 2
Aceh medium $63.50 $64.00 $68.50 3,828     Aceh 0 2 1 3
Dharhan light sweet $67.00 $69.50 $70.50 7,453     Dharhan  0 0 0 0
                       
          Mar Shipping  
Kind of oil tanker Capacity (barrels) Cost per barrel per nautical mile         Ship can be use Panamax Suezmax TI Class  
Panamax 700000 $0.0011         West Texas 0 0 0 0
Suezmax 1200000 $0.0009         Long Beach 0 0 0 0
TI Class 2650000 $0.0005         Brent  0 0 0 0
              Maracaibo 0 0 0 0
            Aceh 0 0 0 0
Kind of oil Octane           Dharhan  0 3 1 4
Sweet light (or light sweet) 24%                    
Intermediate or Medium 19%           Apr Shipping  
Heavy 16%           Ship can be use Panamax Suezmax TI Class  
              West Texas 0 0 0 0
              Long Beach 0 0 1 1
              Brent  0 0 0 0
              Maracaibo 1 0 0 1
Constraints for Brisneyland Oil Refinery        Aceh 3 0 0 3
Purchase and Inventory Constraints       Dharhan  0 3 0 3
Barrels Month of February Month of March Month of April                
Oil needs to purchase 10350000 6250000 9050000       Refine Process  
Inventory 0 2350000 600000         Month of February Month of March Month of April  
Total purchase + Inventory 10350000 8600000 9650000       Total Octane 18,07,500 15,00,000 18,78,500  
Oil used for refining 8000000 8000000 8000000       Limit 15,00,000 15,00,000 15,00,000  
Avaialble oil at the end of month 2350000 600000 1650000                
Minimum Requirement 8000000 8000000 8000000                
Maximum Storage Capacity 11000000 11000000 11000000          Cost of Oil Shipping  Cost
Avaialble oil at the end of April     1000000       Kind of oil Cost Feb 2018 Cost Mar 2018 Cost Apr 2018  
              West Texas intermediate $0.00 $0.00 $0.00 $0.00
Purchase Details Month of February Total Units     Long Beach medium $0.00 $0.00 $0.00 $0.00
Ship can be use Panamax Suezmax TI Class       Brent light sweet $0.00 $0.00 $0.00 $0.00
West Texas intermediate 0 0 0 0     Maracaibo heavy ######### $0.00 $0.00 #########
Long Beach medium 0 0 0 0     Aceh medium ######### $0.00 $0.00 #########
Brent light sweet 0 0 0 0     Dharhan light sweet $0.00 ######### ######### $0.00
Maracaibo heavy 0 0 5300000 5300000     Total Cost $1,51,02,67,580.00
Aceh medium 0 2400000 2650000 5050000     Capacity Increased cost $25,00,000.00
Dharhan light sweet 0 0 0 0     Negotiation Cost @ $175000 per month per ship[max 2 ships allowed per month] #########
Sweet light (or light sweet) 0       Revised Total cost $1,51,43,42,580.00
Intermediate or Medium 5050000                
Heavy 5300000                
Total 10350000                
                       
                       
Purchase Details Month of March Total Units              
Ship can be use Panamax Suezmax TI Class                
West Texas intermediate 0 0 0 0              
Long Beach medium 0 0 0 0              
Brent light sweet 0 0 0 0              
Maracaibo heavy 0 0 0 0              
Aceh medium 0 0 0 0              
Dharhan light sweet 0 3600000 2650000 6250000              
Sweet light (or light sweet) 6250000                
Intermediate or Medium 0                
Heavy 0                
Total 6250000                
                       
                       
Purchase Details Month of April Total Units              
Ship can be use Panamax Suezmax TI Class                
West Texas intermediate 0 0 0 0              
Long Beach medium 0 0 2650000 2650000              
Brent light sweet 0 0 0 0              
Maracaibo heavy 700000 0 0 700000              
Aceh medium 2100000 0 0 2100000              
Dharhan light sweet 0 3600000 0 3600000              
Sweet light (or light sweet) 3600000                
Intermediate or Medium 4750000                
Heavy 700000                
Total 9050000                
                       
                       

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