Linear Programming

This video is one of a 10 part series. Visit our channel's playlist to watch the full set. If you would like more information about Opgrade or Nate Barber visit www.opgrade.com. Narrator: Nate Barber Video slides: LINEAR PROGRAMMING How to Optimize Profit (and other complex systems of equations) -What is Linear Programming (LP)? *A numeric method to optimize a linear function subject to linear constraints -Linear equalities -Linear inequalities *Provides true optimization from given constraints -Maximum profit -Minimum cost -Uses a matrix of coefficients for each variable -Some non-linear equations can also be used -Feasible region represented by a convex polytope -Why use Linear Programming (LP)? *Nearly every refiner uses LP to optimize gross margin (profit) on a regular basis *Dozens of feed-stocks with varying costs and impurities *Dozens of products at varying prices and requirements *Dozens of blends, intermediates, emissions and wastes *Varying ambient conditions and fuel gas prices *Pick the mix for the week that maximizes margin -Identify capital improvement opportunities *Calculate which heavy ends treating units and configurations will provide the highest ROI -Available software *AspenTech -PIMS *Honeywell Hi-Spec Solutions -RPMS *Haverly Systems -GRTMPS  *Microsoft Excel can solve many LP problems -Best and highest use of Solver add-in -How to use Linear Programming (LP) *Enable/install Solver add-in *Identify the optimization problem to be solved *A structured worksheet helps -Cells across the top with the variables that change -Rows below have linear coefficients to each variable -Column to the right of the coefficients has results of the linear equations using coefficients and variables -Column to the right of the results has constraints *In the Solver add-in -Select objective function result (“target”) cell -Select variable cells (“by changing cells”) -Set constraint cell relationships (“add button”)