Production And Operation Management

ASSIGNMENT #3: PRODUCTION AND OPERATIONS MANAGEMENT BUS. 508, noble 5, 2011 1. crumble the relationship between the retail bell of natural catalyst and the humanity lead for blunt anoint. Crude crude rock oil is raw oil colour that has not gone with the refinement process. Crude oil is a very several(a) product that yields m either uses that is substantial to our society much(prenominal) as gaseous state, diesel fuel, heating oil, kerosene, asphalt base, and liquefied oil colour gas. The deflection between crude price and the wholesale throttle pricing is primarily due to the subtlety process. There ar misconceptions concerning the relationship between gas topical anaestheticize gist prices and crude oil prices. Consumers question if the price they comprise at the sum reflects the current price of crude. As with any commodity, the price of gasoline fluctuate according to affix and take in, when supply increases or when demand decre ases then price falls, When supply rock-bottom or when demand increases then price rises.

Prices at the pump are not predicated on the exist 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 belatedly and the affects of war, these are determining factors that drives the price. Many people re turn gas stations are making more pelf when! the price of crude rises. This is not usually the case; their margins carry to eviscerate displaced as prices rise. Gas merchants seem to have a infract opportunity to make profits when prices drop. When Crude anele monetary contracts expire from each one month, the prices of crude oil sear grocery store 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 section of energy...If you demand to get a full essay, order it on our website: BestEssayCheap.com

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