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Non Linear Programming

This document discusses blending problems in industries like petroleum and chemicals. It provides an example of a nonlinear blending problem faced by Grand Strand Oil Company. Grand Strand must determine how to blend three petroleum components into regular and premium gasoline to maximize profits, given constraints like component costs and quantities, product prices and specifications. The optimal solution will specify how many gallons of each component to use in each gasoline blend.

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rinkirola7576
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148 views

Non Linear Programming

This document discusses blending problems in industries like petroleum and chemicals. It provides an example of a nonlinear blending problem faced by Grand Strand Oil Company. Grand Strand must determine how to blend three petroleum components into regular and premium gasoline to maximize profits, given constraints like component costs and quantities, product prices and specifications. The optimal solution will specify how many gallons of each component to use in each gasoline blend.

Uploaded by

rinkirola7576
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Non linear Programming Problems

A nonlinear optimization programming problem is any optimization problem in which at least one term
(Decision Variable) in the objective function or a constraint is nonlinear.

Blending Problems

Blending problems arise whenever a manager must decide how to combine two or more ingredients in
order to produce one or more products. These types of problems occur frequently in the petroleum
industry (such as blending crude oil to produce different octane gasolines) and the chemical industry
(such as blending chemicals to produce fertilizers, weed killers, and so on). In these applications,
managers must decide how much of each resource to purchase in order to satisfy product specifications
and product demands at minimum cost.

Grand Strand Oil Company produces regular-grade and premium-grade gasoline products by blending
three petroleum components. The gasolines are sold at different prices, and the petroleum components
have different costs. The firm wants to determine how to blend the three components into the two
products in such a way as to maximize profits. Data available show that the regular-grade gasoline can
be sold for $2.90 per gallon and the premium-grade gasoline for $3.00 per gallon. The maximum
number of gallons available for the three components are 5000, 10,000 and 10,000, respectively. For the
current production-planning period, Grand Strand can obtain the three components at the costs of
$2.50, $2.60 and $2.84, respectively. The product specifications for the regular and premium gasolines,
shown in Table below, restrict the amounts of each component that can be used in each gasoline
product. Current commitments to distributors require Grand Strand to produce at least 10,000 gallons
of regular grade gasoline. The Grand Strand blending problem is to determine how many gallons of each
component should be used in the regular blend and in the premium blend. The optimal solution should
maximize the firms profit.

Product Specifications
Max Comp 1 30%
Regular Gasoline Max Comp 3 20%
Min Comp 2 40%

Min Comp 1 25%


Premium Gasoline Min Comp 3 30%
Max Comp 2 45%

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