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oil blending

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Model Perspective
Model Perspective
Sep 29, 2022 · Operations

How to Optimize Monthly Oil Purchases and Production for Maximum Profit

Given spot and futures prices for vegetable and non‑vegetable oils, refining capacity limits, storage constraints, and a required product hardness range, this model determines the optimal monthly buying, refining, and inventory decisions that maximize profit for a food‑oil manufacturer over a six‑month horizon.

Linear Programmingoil blendingoperations research
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How to Optimize Monthly Oil Purchases and Production for Maximum Profit