Production and Management

Running head: Production and Operations Management









Assignment 3: Production and Operations Management
















1. Analyze the consanguinity between the sell footing of flatulency and the world demand for crude oil.
In the U.S, the cost of a gallon of gasoline is determined by production and operational management, federal and state taxes, refining and dissemination cost, securities industrying, retail and profits. Gasoline prices fluctuate in local markets callable to competitiveness, world events and disruption in the refinery process. The crude oil market and gasoline market are entangled. However, there are few instances when changes in their perspective markets are not comparable. The escalation of gasoline prices universal is under scrutiny be hasten the cost of gasoline signifi brush offtly impacts the budgets of consumers. The relationship between crude oil prices and gasoline cost at the pump appear broken. Retail prices for gasoline rise more quickly than crude oil and decrease much gradual than crude oil. There have been instances when the price of crude oil held steady and at the same time the price of gasoline increase progressively.



The increase in gasoline prices sometimes can be attributed to a slowdown in processing so creating reductions of supply. World situations can disrupt the supply and demand which could assume the price of crude oil. Some crude oil price increases are temporary, while others reflect longer-lasting market changes. Supply cutbacks, surges in demands, refinery outages can cause temporary price increase called prices spikes. pause of refining process caused by natural disasters can cause a spike in gasoline prices. The increase of orbicular demand for crude oil is ultimately the reason why for higher gasoline prices (Factcheck, 2011).



2. Explain what Marathon could do to hold open the price at the pump the same without losing profits if worldwide crude production decreased by 10%.
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