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Operations Research Models and Methods
Problems Section
Network Flow Programming Models
 - Pipeline Problem

The figure shows an oil field with eight wells spaced uniformly around the perimeter of a circle. The amount of oil produced at each well is shown in the brackets. Oil is to be collected at the wells and delivered to the tanks, at the center of the circle, by a pipeline system.

The cost function for using pipes 1 through 8 is shown at the right. It is a concave-piecewise-linear function. All the arcs indexed from 1 through 8 have the same cost function. The cost of using the pipes on the outside is lineare with the unit cost of $5. Flow can go in either direction. Find the flow distribution that minimizes total cost.

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Operations Research Models and Methods
by Paul A. Jensen
Copyright 2001 - All rights reserved