The Conch Oil Company (#22)

Transport oil at the lowest possible cost

Point Oil Demand / Supply Point Oil Demand / Supply Cost Per Barrel
Doha, Qatar (1) - 30M Doha, Qatar Africa -
Rotterdam, Netherlands (2) + 6M Africa Rotterdam, Netherlands $1.2
Toulon, France (3) + 15M Africa Toulon, France $1.4
Palermo, Italy (4) + 9M Africa Palermo, Italy $1.35
Africa (5) - Doha, Qatar Suez, Egypt $0.35
Suez, Egypt (6) - Suez, Egypt Port Said $0.2
Port Said (7) - Port Said Rotterdam, Netherlands $0.27
Damietta, Egypt (8) - Port Said Toulon, France $0.28
Port Said Palermo, Italy $0.19
Doha, Qatar Suez, Egypt -
Suez, Egypt Damietta, Egypt $0.16
Damietta, Egypt Rotterdam, Netherlands $0.25
Damietta, Egypt Toulon, France $0.2
Damietta, Egypt Palermo, Italy $0.15
The Conch Oil Company
Relevant information
• Needs to transport 30 mil barrels of oil from Doha, Qatar

• 3 refineries to receive
• Rotterdam, Netherlands
• Toulon, France
• Palermo, Italy

• Supertankers travelling around Africa can ship directly at costs of $1.20, $1.40 and
$1.35 per barrel

• Company is contractually obligated to send at least 25% of oil via supertankers

The Conch Oil Company
Relevant information
• Alternate route of shipping to Suez, Egypt at a cost of $0.35 per barrel and then
to Port Said at a cost of $0.20 per barrel

• From Port Said to the 3 receiving locations, cost would be $0.27, $0.28, and
$0.19

• Another alternative route from Suez to Damietta, Egypt and cost would be
$0.16 per barrel

• From Damietta to the receiving locations, cost would be $0.25, $0.20, and $0.15
 Constraints

Variables
Objective
Network Flow Model
Transport oil at the lowest possible cost

$0 $0.16 U.B. 15
- 30

1 $0 L.B. 7.5
5 6 $0.2 7 8
Doha Suez Port Damietta
Africa Egypt
Qatar Egypt Said

$0.27

$0.27
$0.28
$1.2 $1.4 $1.35 $0.19 $0.15

+6
+ 15 +9

2 3 4
Rotterdam
Netherlands Toulon Palermo
France Italy

$0.20

$0.25
The Roanker Hotel (#34)
Cleaning schedule of tablecloths the lowest cost possible
Node Demand/Supply Max Flow Destination Node Cost
Beginning Inventory (1) -500 - DC Overnight $1
Monday (2) +400 - DC $2
Monday DC (3) -500 -
Monday DC Overnight (4) -250 250
Tuesday (5) +300 -
Tuesday DC (6) -500 -
Tuesday DC Overnight (7) -250 250
Wednesday (8) +250 -
Wednesday DC (9) -500 -
Wednesday DC Overnight (10) -250 250
Thursday (11) +400 -
Thursday DC (12) +500 -
Thursday DC Overnight (13) -250 250
Friday (14) +350 -
Equation Labels
Let:
Xij = Number of tablecloths
Then:
X12 = tablecloths supplied to Monday
X23 = tablecloths sent to regular cleaning on Monday
X24 = tablecloths sent to overnight cleaning on Monday
X45 = tablecloths cleaned overnight supplied to Tuesday
X38 = tablecloths cleaned regularly supplied to Wednesday
…etc
Model Representation
Cleaning schedule of tablecloths the lowest cost possible

Objective function:
MIN: 2X24 + X23 + 2X57 + X56 + 2X8,10 +X89 + 2X11,13 + X11,12 + X14,1
Constraints:
Network Flow Model
Cleaning schedule of tablecloths the lowest cost possible
U.B. 100 - 250
+ 400 - 500
- 500

1 4 6
Current
2 Monday
Tuesday
Monday Overnight + 300 Regular
Stock
- 500
5
3 Tuesday
Monday - 250
+350
Regular + 250
7
14 Tuesday

Friday 8 Overnight
Wednesday

- 250
- 500 - 250

13 9
Thursday
Overnight
Wednesday 10
Regular
- 500 Wednesday
Overnight

+ 400
12
Thursday
Regular
11
Thursday
Cash Center Trip Management
Transfer cash from cash centers to branches and ATM sites at the lowest possible cost

Cash Center (9) has a daily available cash of ₱50,000,000

Branch Daily Cash Available Cash Cost Per Trip Insurance Cost Cost Per Trip Insurance Cost %
Demand In Vault from Cash Center % from Cash from Other from Other
Center Branch Branch
Branch 1 (1) ₱10,000,000 ₱5,000,000 ₱3,000 2% ₱2,000 1%
Branch 2 (2) ₱20,000,000 ₱10,000,000 ₱3,000 2% ₱2,000 1%
Branch 3 (3) ₱15,000,000 ₱7,500,000 ₱3,000 2% ₱2,000 1%

Offsite ATM Cash Demand Cost Per Trip Insurance Cost %

Off-Us ATM 1 (4) ₱1,000,000 ₱1,000 2%
Off-Us ATM 2 (5) ₱1,500,000 ₱1,000 2%
Off-Us ATM 3 (6) ₱1,500,000 ₱1,000 2%
Off-Us ATM 4 (7) ₱1,000,000 ₱1,000 2%
Off-Us ATM 5 (8) ₱1,500,000 ₱1,000 2%
Network Flow Model
Cash Center Management
+ ₱1M

- ₱51.5M + ₱10M - ₱5M 2%, ₱1K 4

2%, ₱3K 0 2%, ₱1K

9 1 101 2%, ₱1K 2%, ₱1K
+ ₱1.5M

2%, ₱3K 1%, ₱2K 2%, ₱1K

1%, ₱2K
2%, ₱1K
2%, ₱1K 5
+ ₱20M - ₱10
2%, ₱1K 2%, ₱1K
0 + ₱1.5M
2%, ₱3K
2 201
1%, ₱2K
2%, ₱1K 6
1%, ₱2K
+ ₱15M - ₱7.5M
2%, ₱1K
2%, ₱1K + ₱1M
0 2%, ₱1K
3 301
7
2%, ₱1K
2%, ₱1K
+ ₱1.5M