OiCo is building a refinery to produce four products diesel
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OiCo is building a refinery to produce four products diesel

OiCo is building a refinery to produce four products diesel, gasoline, lubricants, and jet fuel The minimum demand (in bb day) for each of these products is 14,000,30,000, 10,000, and 8000, respectively. Iraq and Dubai are under contract to ship crude to OilCo. Because of the production quotas specified by OPEC (Organization of Petroleum Exporting Countries), the new refinery an receive at least 40% of its crude from Iraq and the remaining amount from Dubai. OilCo predicts that the demand and crude oil quotas will remain steady over the next 10 years.

The specifications of the two crude oils lead to different product mixes. One barrel of Iraq crude yields.2 bbl of diesel, 25 bbl of gasoline, .1 bbl of lubricant and .15 bbl of jet fuel. The corresponding yields from Dubai crude are .1..6,15,and.1, respectively Oil Co needs to determine the minimum capacity of the refinery (in bbl/day).

Hint
ManagementThere are various steps necessitating the construction of effective R charts. Gathering data, plotting the data, computing overall control limits & process averages, Charts interpretation for statistical control, and computing process standard deviation if suitable represent the primary construction steps. ...

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