The purpose of this thesis is to analyze the alternatives of the Governmental mandatory program for supplying low sulfur fuel oil and low lead gasoline.
A linear programming model is developed for analyzing the whole Korea Refining Industry process, whose approach has been rarely used as yet.
For each of the three proposed alternatives of the governmental mandatory program, the optimal supplying strategy and its total cost are attained.
All supplying strategies of the alternatives are compared under the two conflicting views: Government and the refining industry.
In addition, the petroleum product price structure is reviewed by applying several Jointproduct costing methods.
The outcomes of this study may not truely reflect the real status of Korea Refining Industry due to insufficient and unreliable data. However, this model and analyzing procedure gives some insights for the future policy making in the other process industry as well as the refining industry.