# Refinery Optimization Using LPP

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Management Science for Decision Support
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Constructing diagram that shows different products as well as the different processingstages\..........................................................................................................................................12...................................................................................................................................................23 and 4 Discussing optimal solution on the basis of outcome assessed through solver..............7CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13APPENDIX....................................................................................................................................14Appendix 1: Abbreviations of above depicted elements are as follows:...................................14Appendix 2:...............................................................................................................................16
INTRODUCTIONLinear programming may be served as a tool or method which in turn helps in derivingbest outcome in terms of profit maximization and lower cost. It is a mathematical model whichdescribes and exhibit linear relationship between the variables (Balakrishnan, Render and Stair,2011). Such model or tool is highly significant which in turn helps business unit in makingsuitable decisions. The present report is based on the case situation of refinery optimizationwhich will provide deeper insight about the way through which profit can be maximized by thefirm. Hence, LPP entails the manner through which business unit can make optimal use ofresources and thereby maximizes profit. 1. Constructing diagram that shows different products as well as the different processing stages\On the basis of given case situation, oil refinery purchases of two crude oil go throughfrom different processes such as distillation, reforming, cracking and blending. Hence, givencase presents that Distillation process divides each crude oil into fractions such as naphthas(light, medium and heavy), oil (light and heavy) and residuum. Along with this, such naphthashave octane number of 90, 80 & 70 respectively. Along with this, case study presents thatreforming process produces reformed gasoline and has an octane number of 115. Further, incracking light and heavy oil is used by the company for blending either jet fuel or fuel oil. On theother side, cracked oil is used for blending petrol. Apart from this, residuum can be used by thecompany to produce lube oil. Besides this, residuum can also be undertaken to blend into jet fuelor fuel oil. Thus, by considering all such aspects diagram including input, intermediate andoutput products have drawn. Variables undertaken for refinery optimization problem are enumerated below:
Low Naphtha Blending 1Crude oil 1 Refining refined gasoline Medium NaphthaCrude oil 2 Cracking Cracked gas Cracked oil2. Abbreviations of below depicted elements are mentioned in appendix: The main objective is to maximize the following functions:Variables formulationcr1, cr2, ln, mn, hn, lo, ho, r, lnrg, mnrg, hnrg, rg, locgo, hocgo 0 .................(i)cg, co, lnpmf, lnrmf, mnpmf, mnrmf, hnpmf, hnrmf, rgpmf, rgrmf 0 ..................(ii)cgpmf, cgrmf, lojf, hojf, rjf, cojf, lofo, hofo, rfo, cofo 0 ......................(iii)Distillation Regular petrolPremiumpetrolResiduumHeavyoilLightoilHeavyNaphthaProducing Lube oil Blending 2Jet fuelBlending 3Fueloil

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