Objective profit

Possible objectives for the IE with 6 plants are the profit, lEcP and lEvP. Comparing the two economic objectives, profit is the difference between the revenues and the costs of the system while lEcP is the ratio of the emergy of revenues to the emergy of costs. As mentioned above, the emdollars in both numerator and denominator of lEcP is the same, thus lEcP is simply reduced to the ratio of revenues to costs. In other words, profit gives the absolute monetary value that the system can earn... 

Safety and the satisfaction of production specifications are the two principal operational objectives for a chemical plant. Once these are achieved, the next goal is how to make the operation of the plant more profitable. Given the fact that the conditions which affect the operation of the plant do not remain the same, it is clear that we would like to be able to change the operation of the plant (flow rates, pressures, concentrations, temperatures) in such a way that an economic objective (profit) is always maximized. This task is undertaken by the automatic controllers of the plant and its human operators. 

Amin and Zhang (2012) considered a CLSC network design problem with three objectives profit maximization, defect rate minimization, and maximization of the importance of external suppliers. A fuzzy model was used to determine the importance scores of the suppliers, and scores were used in the maximization of the importance of the external suppliers objective. 

The objective of any exploration venture is to find new volumes of hydrocarbons at a low cost and in a short period of time. Exploration budgets are in direct competition with acquisition opportunities. If a company spends more money finding oil than it would have had to spend buying the equivalent amount in the market place there is little Incentive to continue exploration. Conversely, a company which manages to find new reserves at low cost has a significant competitive edge since it can afford more exploration, find and develop reservoirs more profitably, and can target and develop smaller prospects. 

The reservoir model will usually be a computer based simulation model, such as the 3D model described in Section 8. As production continues, the monitoring programme generates a data base containing information on the performance of the field. The reservoir model is used to check whether the initial assumptions and description of the reservoir were correct. Where inconsistencies between the predicted and observed behaviour occur, the model is reviewed and adjusted until a new match (a so-called history match ) is achieved. The updated model is then used to predict future performance of the field, and as such is a very useful tool for generating production forecasts. In addition, the model is used to predict the outcome of alternative future development plans. The criterion used for selection is typically profitability (or any other stated objective of the operating company). 

Finding the best solution when a large number of variables are involved is a fundamental engineering activity. The optimal solution is with respect to some critical resource, most often the cost (or profit) measured in doUars. For some problems, the optimum may be defined as, eg, minimum solvent recovery. The calculated variable that is maximized or minimized is called the objective or the objective function. 

Optimization of a process is an activity whereby the best conditions are found for attainment of a maximum or minimum of some desired objective. In the broadest sense, an industrial process has maximum profit as its goal, but there are also problems with less-ambitious goals that do not involve money or the whole plant. 

Formulation of the Objective Function The formulation of objective functions is one of the crucial steps in the application of optimization to a practical problem. You must be able to translate the desired objective into mathematical terms. In the chemical process industries, the obective function often is expressed in units of currency (e.g., U.S. dollars) because the normal industrial goal is to minimize costs or maximize profits subject to a variety of constraints. 

Actual Costs versus Standard Costs Let us consider the sales, profits, and manufacduring-cost data in Table 9-40. The gross profit is 33,129 per period better than e)mected. Clearly, there is less incentive to investigate overall costs when the profit variance is favorable than if the profit were less than expected. However, standard costing enables an objective analysis of the data, whether good or bad, to be made. 

Type of Reactor The specific type of reac tor that is most compatible (or least incompatible) with the CTiosen combination of the preceding parameters seldom is clearly and unequivocally perceived without difficulty, if at all. In the end, however, that remains the objective. As is always true, the ultimate criteria are rehabihty and profitability. 

Cost Whether measurement or a computation technique is cheaper depends on the situation in question. In small and simple problems, it is usually more profitable to use measurement techniques. In large and complex problems, where parametric/sensitivity study is the objective, computation may be a better alternative. 

The objective of the production process is to produce the right goods of the right quality and at the right price in order to generate a financial profit from the capital investment, but the plant layout fundamentally affects this objective. 

The plant engineer s objective must be to ensure that plant operates at a profit. If overall efficiency of operation is to be achieved, and the working costs of plant kept within acceptable bounds, time must be set aside for the control and application of lubrication. The evolution of lubricants and their application has continued ever since the beginning of the Industrial Revolution, and as the pattern of industry becomes increasingly more complex, the standard of performance of lubricants becomes progressively more important. 

This chapter addresses project management aspects of a revamp. It also provides design guidelines that can be used by a refiner in selecting the revamp components. The original driving force for a project is often a particular mechanical problem or a process bottleneck. The ultimate objective of a revamp should be a safe, reliable, and profitable operation. 

The objective of the primary absorber/stripping towers is to maximize recovery of C3 and heavier components while rejecting and lighter to fuel, C3 is first absorbed and then and lighter components are stripped. Although maximizing C3-C4 recovery for alkylate feed is very profitable, lower recoveries are often accepted to maximize the FCC conversion and/or feed rate. 

The successful and profitable control of frozen food quality requires workable standards of product quality and condition and suitable methods for determining the degree of product conformance with standards. The frozen fruit and vegetable industry has developed rapidly during the past 20 years and serious concentration upon the development of adequate standards and objective methods for quality measurement is necessary. Such standards and methods should be placed on a uniform basis the country over and given official and legal status. 

The successful and profitable conduct of a frozen food quality program requires suitable and workable standards of product quality and condition, and suitable methods for determining the degree of product conformance with the standards. The methods used may be either subjective or objective in character, or a combination of both the most consistent and reproducible results will be obtained with objective methods. Present-day frozen food standards are, for the most part, based upon subjective methods of quality determination. These are certainly better than none at all but they are subject to considerable misinterpretation and human error, and for this reason leave much to be desired in providing a sound basis for quality control. 

Much valuable research has been devoted to developing the basic principles for the production of frozen fruits and vegetables of high and uniform quality. If this knowledge could be applied to its fullest extent, there would be little need for concern over the quality of such foods. Before this can be done, those responsible for quality control must be provided with suitable standards of quality and condition, and objective methods of analysis which will clearly indicate conformance or nonconformance to the standards. Responsibility for this resides with the research food technologist or chemist. It constitutes a rich field for profitable and practical research. 

Now that we have dealt with most exist factors, lets see whether the process is profitable or not. A key factor in industry is profitability regardless of technical achievement Objective procedures to aid such assessment are based on the return on investment (ROI) as the criterion. 

Note that essentially each person has an investment of 1.5 when he starts. Thus the reader may forget the object and play the money game according to the rules given. For example, the element in the first row and second column shows that X who bid zero loses the object and therefore Y gets the object which is worth 3, thereby making a profit of 1.5. Since the matrix represents the payoff from Y to X we use —1.5 indicating that thereby X pays Y, i.e., he loses his investment. 

Various criteria were proposed for the optimal selection of the equipment configuration and the number and sizes of units. In grass-root design, the capital cost of equipment is mostly used as the optimization criterion. In retrofit design a more appropriate objective function seems to be the net profit, which has to be maximized. Papageorgaki and Reklaitis (1993) formulated the criterion as follows ... 

The method above does not account for differences in the profitability of various products. Reinhardt and Rippin formulated an objective function that takes these into account. They proposed to use the Here and Now design including that objective function. The Here and Now design comprise three steps (1) optimization of the design and operating variables for the worst possible realization of the uncertain parameters ... 

The objective function of profitability with the possible expansion at some future date te takes the form ... 

Production planning includes considerations on production objectives over a certain time horizon given marketing forecasts for prices and product demands, equipment availability, and inventories. This is a macrolevel problem of the allocation of production capacity, time, product inventories, and labour and energy resources, so as to determine the production goals that maximize the total profit over an extended period of time into the future (e.g. a few months to a few years). 

---