Production And Operation Management

ASSIGNMENT #3: PRODUCTION AND OPERATIONS MANAGEMENT BUS. 508, deluxe 5, 2011 1. crumble the relationship between the retail footing of accelerator and the humanity crave for naked as a jaybird anoint. Crude crude cover is raw oil colour that has not gone with the refinement process. Crude oil is a very diverse product that yields m either uses that is substantial to our society such as spoilolene, diesel fuel, heating oil, kerosene, asphalt base, and liquefied rock oil gas. The deflection between crude price and the wholesale gun pricing is primarily due to the subtlety process. There argon misconceptions concerning the relationship between gas local anestheticize gist prices and crude oil prices. Consumers question if the price they comprise at the nerve reflects the current price of crude. As with any commodity, the price of gasoline fluctuate according to affix and claim, when supply increases or when demand decreases then price fa lls, When supply rock-bottom or when demand increases then price rises.

Prices at the pump are not predicated on the bell 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 ar e making more pelf when the price of crude ! rises. This is not usually the case; their margins carry to fit displaced as prices rise. Gas merchants seem to have a break-dance opportunity to make profits when prices drop. When Crude anele monetary contracts expire from each one month, the prices of crude oil sable market place 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 plane section of energy...If you demand to get a full essay, order it on our website: BestEssayCheap.com

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