Where To Buy Oil To Minimize Cost

December 21, 2023/

Uncategorized

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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