Dr. Vasko

MAT361 PROJECT 1    Due October 19, 2007 by 2 pm         

 

REFINERY OPTIMIZATION

          An oil refinery purchases two crude oils, crude 1 at a price of $75 per barrel and crude 2 at a price of $80 per barrel.  These crude oils are put through four processes: distillation, reforming, cracking, and blending, to produce petrols and fuels which are sold.

 

DISTILLATION

          Distillation separates each crude oil into fractions known as light naphtha, medium naphtha, heavy naphtha, light oil, heavy oil, and residuum according to their boiling points.  Light, medium,  and heavy naphthas have octane numbers of 90, 85, and 75 respectively.  The cost of distillation is $5 per barrel of crude oil input to the distillation process.  The fractions into which one barrel of each type of crude splits are given in the table:

 

Light naphtha

Medium naphtha

Heavy naphtha

Light   oil

Heavy   oil

Residuum

Crude 1

0.1

0.2

0.2

0.12

0.2

0.13

Crude 2

0.15

0.25

0.18

0.08

0.19

0.12

    Note: There is a small amount of wastage in distillation.

 

REFORMING

          The naphthas can be used immediately for blending into different grades of petrol or can go through a process known as reforming.  Reforming produces a product known as reformed gasoline with an octane number of 115.  Reforming costs $3 per barrel of naphtha input to the reforming process.  The yields of reformed gasoline from each barrel of the different naphthas are given below:

            1 barrel of light naphtha yields 0.6 barrels of reformed gasoline;

            1 barrel of medium naphtha yields 0.52 barrels of reformed gasoline;

            1 barrel of heavy naphtha yields 0.45 barrels of reformed gasoline.

 

CRACKING

          The oils (light and heavy) can either be used directly for blending into jet fuel or fuel oil or can be put through a process known as catalytic cracking.  Cracking costs $2 per barrel of oil input to the cracking process.  The catalytic cracker produces cracked oil and cracked gasoline.  Cracked gasoline has an octane number of 105.

            1 barrel of light oil yields 0.68 barrels of cracked oil and 0.28 barrels

                        of cracked gasoline;

            1 barrel of heavy oil yields 0.75 barrels of cracked oil and 0.2 barrels

                        of cracked gasoline.

Cracked oil is used for blending fuel oil and jet fuel; cracked gasoline is used for blending petrol.

            Residuum can be used for producing either lube-oil or blending into jet fuel and fuel oil:

            1 barrel of residuum yields 0.5 barrels of lube-oil.

 

 

 

BLENDING

PETROLS (MOTOR FUEL)

          There are two sorts of petrol, unleaded and premium, obtained by blending the naphtha, reformed gasoline, and cracked gasoline.  The only stipulations concerning them are that unleaded must have an octane number of at least 87 and that premium must have an octane number of at least 94.  It is assumed that octane numbers blend linearly by volume.

JET FUEL

          The stipulation concerning jet fuel is that its vapor pressure must not exceed 1 kilogram per square centimeter.  The vapor pressure for light, heavy, and cracked oils and residuum are 1.0, 0.6, 1.5, and 0.05 kilograms per square centimeter respectively.  It may again be assumed that vapor pressures blend linearly by volume.

FUEL OIL 

          To produce fuel oil, light oil, cracked, heavy oil, and residuum must be blended in the ratio 10:4:3:1.

          There are availability and capacity  limitations on the quantities and processes used:

1.      The daily availability of crude 1 is 20,000 barrels.

2.      The daily availability of crude 2 is 30,000 barrels.

3.      At most 10,000 barrels of naphtha can be reformed per day.

4.      At most 45,000 barrels of crude can be distilled per day.

5.      At most 8,000 barrels of oil can be cracked per day.

6.      The daily production of lube oil must be between 500 and 1000 barrels.

7.      Premium motor fuel production must be at least 40% of unleaded motor fuel production.

 

            The selling values of the final products (in $ per barrel) are:

                        Premium petrol 180.00

                        Unleaded petrol            150.00

                   Jet fuel                          130.00

                        Fuel oil             120.00

                        Lube-oil                       100.00

            How should the operations of the refinery be planned in order to maximize total profit?

 

PROJECT STATEMENT: For the problem described above:

1.      mathematically formulate the problem,

2.      solve it using EXCEL Solver or LINDO—your choice,

3.      interpret the results,

4.      write a short report in MS WORD.

The short report should include your recommendations to management (use graphs, flow charts and tables as appropriate to sell management on your recommendations), mathematical formulation (appendix), and computer results.

5. Email the WORD document and EXCEL spreadsheet to Dr. Vasko (vasko@kutztown.edu) by the deadline.

 

 

 

 

 

GROUPS:

 

GROUP 1: Nicole Baehr, Holly Baublitz, Eugene Farell, Samantha Fichthorn

 

GROUP 2: Eric Finkboon, Timothy Gray, Brooke Green, James Hammer

 

GROUP 3: Jacquelyn Hanford, Rebekah Herrlin, Bradley Howe, Kevin Kauffman

 

GROUP 4: Brian Walsh, Kerry Lehman, Stephen Lenceski, Jayme, Mahle

 

GROUP 5: Alex Millard, Shane O’Neill, Amber Snyder, Candace Walker