APPLICATION OF LINEAR PROGRAMMING (LP) TO A PRODUCT BLENDING PROBLEM IN KADUNA REFINING AND PETROCHEMICAL COMPANY LIMITED
Publication Date : 01/02/2009
The main objective of this paper is to apply a Linear programming (LP) model to products blending problem to achieve an optimum production plan in a refinery. The model considers the existence of several processing units in the refinery, producing a variety of intermediate streams, with different pr >perks, that can be blended to obtain commercial products. The objective of the blending model is to mini ize the cost of meeting a given demand structure taking into account the cost of the intermediate stream used For blending, sale price and product demand. The refined products include premium motor spirit (PMS), Dual Purpose. Kerosene (DPK), Automotive Gas Oil (AGO) and Low Pour Fuel Oils (121:0) but only premium motor spirit is used for the model application in this paper. The production and marker scenario that was analyzed using MATHCAD provided an optimum production plan with significant profits. A sensitivity analysis was carried out to confirm the validity of the model. The results revealed that there is a very. large potential of profitability in the application of linear programming models to production planning in refineries.
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