OperATION MANAGEMENT :sOLVER TOOL
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A problem often of concern to managers in the process industry is blending. Consider the task facing the procurement manager of a company that manufactures special additives. She must determine the proper amounts of each raw material to purchase for the production of a certain product. Three raw materials are available. Each gallon of the finished product must have a combustion point of at least 220F. In addition, the gamma content (which causes hydrocarbon pollution) cannot exceed 6% of the volume. The zeta content (which cleans the internal moving parts of engines) must be at least 12% by volume. Each raw material has varying degrees of these characteristics.
Raw material
Characteristic
A
B
C
Combustion point (F) 200 180 280
Gamma content (%) 4 3 10
Zeta content (%) 20 10 8
Raw material A costs $0.60 per gallon; raw material B, $0.40; and raw material C, $0.50. The procurement manager wishes to minimize the cost of raw materials per gallon of product. What are the optimal proportions of each raw material to use in a gallon of finished product? Hint: Express your decision variables in terms of fractions of a gallon. The sum of the fractions must equal 1.00.
VARIABLE DEFINITIONS
FORMULATION
SOLUTION
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The word document contains mathematical formulation with explanations of operation management problem.The excel file has problem formulation in Solver tool and optimal solution.
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