Maximum allowable cost

After field processing of wellhead products is complete, the oil and gas production phase of the industry passes into the refining stage, where the crude oil and field gas are further processed to make the products that ultimate users will purchase. The prices that refiners will pay determine the maximum allowable costs for oil and gas exploration and production. An oil or gas producer must be able to provide the product at a competitive price. For a vertically integrated oil company, no actual sale may take place, but the economics are much the same. 

If the maximum allowable cost in the above example is 90, then n 2 and n 1. Thus one sample and two analyses would be done at a... 

JM Ganther, DH Kreling. The effect of implementing a maximum allowable cost generic substitution plan on... 

Although this measure was first introduced in Germany in 1989, constraints on public drag spending and the creation of incentives for cheaper alternatives are not new to cost containment policies, especially in public health systems. Several forms of public financing of pharmaceuticals based on comparison (yardstick competition) have been used in some countries by public and private insurers. Public financing mechanisms that pursue a similar strategy to that of RP include the maximum allowable cost (MAC) applied by the... 

More stringent forms of the copayment approach are maximum allowable cost programs. Those programs require that the patient pay the full difference between the branded prescription and the normal prescription copayment. In the extreme case, mandatory generic substitution programs require that generics be dispensed or the patient receive no reimbursement at all. 

Average wholesaler price (AWP) Estimated acquisition cost (EAC) Maximum allowable cost (MAC)... 

Diversified Pharmaceutical Services, Inc., with roots going back to the early 1970s, is credited for establishing maximum allowable cost (MAC) programs and mandatory generic drug programs.It has been associated with SmithKline Beecham Healthcare Services and was once a subsidiary of the United Healthcare Corporation, but is now part of the Express Scripts network. 

Often there is one principal response which is the most important one, and the other responses can be regarded as constraints imposed on the possible solution, e.g. impurities should be below a certain level, or that there is a maximum allowable cost. 

The efficiency of gas turbines is limited by the maximum allowable turbine inlet temperature (TIT). The TIT may be increased by cooling of the blades and vanes of the high pressure turbine. Cooling channels can be casted into the components or may be drilled afterwards. Non-conventional processes like EDM, ECD or Laser are used for drilling. Radiographic examination of the drilled components is part of the inspection procedure. Traditional X-Ray film technique has been used. The consumable costs, the waste disposal and the limited capacity of the two film units lead to the decision to investigate the alternative of Real-Time X-Ray. 

There are two general temperature poHcies increasing the temperature over time to compensate for loss of catalyst activity, or operating at the maximum allowable temperature. These temperature approaches tend to maximize destmction, yet may also lead to loss of product selectivity. Selectivity typically decreases with increasing temperature faster deactivation and increased costs for reactor materials, fabrication, and temperature controls. 

Rossiter (1986) demonstrated the procedure for the production process of crystalline common salt from brine. It was found that the optimal median size is determined by the entrainment limit in the crystallizer. The crystallizer had to be operated at maximum allowable temperature and the slurry density measured for quality constraints. It was also suggested that cost discontinuities should be imposed based on temperatures of the available heat sources, possible materials of construction and other intrinsic properties of the system. 

The Instrumentation and Laboratory Improvement (ILI) Program aids in the purchase of laboratory equipment for use in undergraduate laboratories at all levels. Annual funding has been 23 million for the past 5 years and is anticipated to remain at this level for the near future. Typically, 2300 proposals are received, resulting in approximately 600 awards per year. ILI has two components The major one accepts proposals for equipment only, the other, known as Leadership in Laboratory Development, seeks to support the development of exemplary national models for laboratory curricula by providing funds for personnel and supplies as well as for equipment. Five percent of the ILI budget is devoted to Leadership projects, and preliminary proposals are required. A 50% institutional match for equipment costs is necessary for all ILI proposals. The maximum allowable request from NSF is 100,000. In the 1992 competition, 60 proposals to initiate or improve materials science laboratories were received 15 were from departments of chemistry, the remainder from engineering units. 

A petroleum refinery has two crude oil feeds available. The first crude (Crude 1) is high-quality feed and costs 30 per barrel (1 barrel = 42 US gallons). The second crude (Crude 2) is a low-quality feed and costs 20 per barrel. The crude oil is separated into gasoline, diesel, jet fuel and fuel oil. The percent yield of each of these products that can be obtained from Crude 1 and Crude 2 are listed in Table 3.6, together with maximum allowable production flowrates of the products in barrels per day and processing costs. 

Table 7.2 provides the relevant cost data for product and raw material, as well as the average duration of each process and the maximum allowable water for each process calculated using constraint (7.5). The effluent treatment cost is 200 c.u. per ton. 

Characteristics of raw makeup and cooling tower waters, temperatures, maximum allowable temperature, flow rates available, and unit costs. 

The proportion of Ml increases in warm weather regions. M2 and M4 increase when water transport lines are long and the proportion of M3 is lowered as the maximum allowable chilled water temperature rises. However, regardless of these proportions in a particular installation, the goal of optimization is to find the minimum chilled water and cooling tower water temperatures that will minimize the total cost of operation. 

The Records Conservation Section has five years of satisfactory experience treating a variety of unique works with Wei To solutions. A survey of conservators and scientists in other institutions verified the chemistry was sound and the results were aesthetically acceptable. The problems to be resolved were mechanical, involving equipment choice rather than the chemistry of the treatment (11). The hazards inherent to the system could be isolated and controlled at the treatment site. The solvent, approximately 90% dichlorodifluoromethane and 10% methanol by volume, has a maximum allowable concentration of 982 ppm in air (12), a level many times more than expected in workroom air. Incorporation of solvent recovery equipment not only reduces unit treatment cost but avoids a potential detrimental effect on the ozone layer in the upper atmosphere by dichlorodifluoromethane. 

The constraints changed from one trial configuration of the reaction system to the next, but typically included things like the minimum coolant temperature to permit efficient utilization of the heat of reaction as process steam, the maximum allowable aldehyde concentration in the condensed crude product to avoid refining and product specification problems, and a prescribed reactor pressure drop to insure adequate flow distribution among the reactor tubes at a minimum energy cost. All of these are implicit constraints — they establish the maximum or minimum levels for certain response variables. Explicit constraints comprise the ranges for search variables. 

Choose on economic grounds, especially on raw materials costs and product value, a value of the maximum allowable reciprocal selectivity ratio (SXp)ma for parallel reactions or yield for consecutive reactions. 

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