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ABSTRACTThe study examined the application of linear programming in a manner that guarantees optimality in refining of petroleum products at the Warri Refinery and PetrochemicalCompany (WRPC). Scarcity of petroleum products in Nigeria especially PMS and DPK has been a reoccurring decimal leading to continuous rise in the prices of the products. One reason for this is inefficiency in the refining process thereby leading to abnormality in the distribution value chain. The study show that among the common challenges faced in business are problems of planning activities, resource allocation, product optimization as well as cost minimization problem. The objectives of the study were todetermine the quantity of PMS,AGO and DPK required to be produced in order to maximise total sales. The study which used data culled from the NigerianNational Petroleum Corporation Annual Statistical Bulletincovers the period from, 2005 to 2016. Utilising linear programming method, the study found that the high rate of fluctuation in the products was a reoccurring decimal with PMS being relatively more pronounced. Specifically, the study found out that the WRPC achieved optimality in its refining process for a period of five years (2008, 2009 and 2011 - 2013) in producing PMS. The study further found out that the company also achieved optimality for another five years in the production of AGO namely in 2005 - 2007, 2014 and 2016 respectively. For DPK refining, the study finds that the WRPC reached optimality for only two years period in 2010 and 2015, respectively. Therefore, among other things the study recommended that the WRPC may embark on a well-planned production capacity that will ensure producing optimal output thereby leading to minimum cost in the refining process and availability of these products at the retail outlets.
