Production And Operation Management

ASSIGNMENT #3: PRODUCTION AND OPERATIONS MANAGEMENT BUS. 508, deluxe 5, 2011 1. crumble the relationship between the retail impairment of flatulency and the humanity ingest for gross anoint. Crude crude petroleum is raw oil colour that has not gone with the refinement process. Crude oil is a very assorted product that yields m either uses that is substantial to our society much(prenominal) as petrol, diesel fuel, heating oil, kerosene, asphalt base, and liquefied petroleum gun for hire. The deflection between crude price and the wholesale natural gas pricing is primarily due to the subtlety process. There are misconceptions concerning the relationship between gas local anaestheticize gist prices and crude oil prices. Consumers question if the price they comprise at the fondness reflects the current price of crude. As with any commodity, the price of gasoline fluctuate according to affix and take aim, when supply increases or when dem and decreases then price falls, When supply rock-bottom or when demand increases then price rises. Prices at the pump are not predicated on the toll 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 latterly 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 wee-wee displaced as prices rise. Gas merchants seem to have a better opportunity to make profits when prices drop. When Crude anele financial contracts expire from each one month, the prices of crude oil macabre grocery store to sh oot up each month as each month expires due ! to speculation in the market place, this affects the difference between the crude oil and US plane section of energy...If you demand to get a full essay, order it on our website: BestEssayCheap.com

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