Production And Operation Management

ASSIGNMENT #3: PRODUCTION AND OPERATIONS MANAGEMENT BUS. 508, rarified 5, 2011 1. crumble the relationship between the retail hurt of flatulence and the humanity affect for stark naked anoint. Crude crude ve impersonateable oil is raw oil colour that has non gone through the refinement process. Crude oil is a very respective(a) product that yields m either uses that is substantial to our society such as gun, diesel fuel, heating oil, kerosene, asphalt base, and liquefied crude oil gas. The deflection between crude price and the wholesale flatulency pricing is primarily due to the subtlety process. There are misconceptions concerning the relationship between gas local anestheticize gist prices and crude oil prices. Consumers question if the price they comprise at the center reflects the current price of crude. As with any commodity, the price of gasoline fluctuate according to affix and penury, when supply increases or when demand de creases then price falls, When supply rock-bottom or when demand increases then price rises.

Prices at the pump are not predicated on the address of the gasoline that is presently in a stations underground tanks, but, its determined by the refinerys profit margins, crude oil prices and what it will cost to buy the next delivery which takes in consideration local conditions, pipeline fees, distribution costs, economic/environmental disasters such as hurricanes, tsunamis, pipeline ruptures as we have come across recently and the affects of war, these are determining factors that drives the price. Many people return gas stations are making more pelf when the ! price of crude rises. This is not usually the case; their margins carry to get displaced as prices rise. Gas merchants seem to have a wagerer opportunity to make profits when prices drop. When Crude anele pecuniary contracts expire from each one month, the prices of crude oil colored securities industry to shoot up each month as each month expires due to speculation in the market place, this affects the difference between the crude oil and US department of energy...If you demand to get a full essay, order it on our website: OrderCustomPaper.com

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