An Oil Company has two oil fields from which all crude oil is piped to one of
Question:
An Oil Company has two oil fields from which all crude oil is piped to one of two shipping centers, where it is then placed on tankers to be sent to oil refineries in the United States. The daily supply at the Eldart and Kaiween oil fields are 1,800 and 1,400 barrels, respectively. The pipeline costs and daily pipeline capacities are:
| shipping depot | cost per barrel |
| 1 | $.20 |
| 2 | $.15 |
| old field | pipeline capacity per destination |
| eldart | 1,000 |
| Kaiween | 800 |
The shipping costs to each refinery from each shipping depot and the daily refinery demands are:
| refinery location | shipping cost per barrel | ||
| depot 1 | depot 2 | daily demand | |
| new jersey | $.10 | $.15 | 1600 |
| houston | $.20 | $.25 | 1000 |
1. What is the constraint for the refinery located in New jersey?
2. What is the constraint for the Eldart oil feild ?
3. What is the constraint for shipping dock 1?
4. What is the constraint for the refinery located in New jersey if 10% of the oil is leaked and wasted in the transportation process between the shipping depots and the refinery?
Expert Answer:
1 The constraint for the refinery located in New Jersey is that it can only receive 1600 barrels of ... View the full answer
