The incremental shipping costs per barrel crude gasoline or distillate between

# The incremental shipping costs per barrel crude

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The incremental shipping costs per barrel (crude, gasoline, or distillate) between the various localities are given below: Shipping Costs Between and Australia Japan Iran Borneo New Zealand Philippines .62 .26 .10 .15 .59 .24 .20 .10
CASES 8 The above costs will be incurred whether the company uses its own tankers or those it leases. However, if it leases tankers it must pay an additional \$3,200 per tanker per day. The number of tankers required to ship 1,000 bpd between the various localities are given below: Tanker Usage Between and Australia Japan Iran Borneo New Zealand Philippines .12 .05 .02 .03 .11 .05 .04 .02 The company owns 7 tankers The diagram on the next page represents the flows of crude, gasoline, and distillate throughout the production process. This diagram reflects Trans Pacific Oil Company's policy of not marketing Japanese refined products in Australia and Australian refined products in Japan. Formulate the problem facing Trans Pacific Oil Company as a linear programming problem. Do not solve. Suggestion: Use separate variables for each of the circles in the diagram these variables are defined on the page following the diagram. Define any additional variables that you need.
CASES 9
CASES 10 Trans pacific Oil Company Variables X 1 Crude shipped from Iran to Australia. X 2 Crude shipped from Iran to Japan. X 3 Crude shipped from Borneo to Australia. X 4 Crude shipped from Borneo to Japan. X 5 Gasoline shipped from Australia to Australia. X 6 Distillate shipped from Australia to Australia. X 7 Gasoline shipped from Australia to New Zealand. X 8 Distillate shipped from Australia to New Zealand. X 9 Gasoline shipped from Australia to Philippines. X 10 Distillate shipped from Australia to Philippines. X 11 Gasoline shipped from Japan to Japan. X 12 Distillate shipped from Japan to Japan. X 13 Gasoline shipped from Japan to New Zealand. X 14 Distillate shipped from Japan to New Zealand. X 15 Gasoline shipped from Japan to Philippines. X 16 Distillate shipped from Japan to Philippines. All of the above variables are expressed in terms of barrels per day.
CASES 11 Case D: Linear Programming Case Study Hoyle Slick Adapted from Ole___ Company Ltd. (A) and (B), IM 1820 and 1821, prepared by S.W. Yost under the direction of J.L. McKenny of the Harvard Graduate School of Business Administration. This case appeared in Spivey, W. Allen and Robert M. Thrall, Linear Optimization, Rinehart and Winston, Inc., Toronto, 1970. A Linear Programming Case Study * Aug. 7 th Mr. Hoyle Slick, president and founder of Hoyle Slick Petroleum, Ltd., calls Mr. D.L. "Dave" Wasserman, chief of operations, into his office to voice his concern over the recent problems that the company has had with its Far Eastern operations. Slick operates two refineries in the Far East (one in Taiwan and the other in South Korea) to serve markets in Taiwan, South Korea, Hong Kong and Japan. There have been numerous complaints of late of shortages at the markets, of the refineries being unable to fill orders, late deliveries, etc. Moreover, there has developed considerable friction between the Far East sales people and refinery operators.

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• Fall '05
• EL
• Business, Management, japan, Oil refinery, Refinery, motor gas