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Linear mathematical model to optimize buying, shipping and storing oil field tubulars

Ege, Stephen Lawrence
Scope and Method of Study: This study develops a mathematical model to assist oil companies in buying, shipping, and storing tubulars at the minimum cost. The equations developed were to utilize existing information which the materials sections of these companies were presently collecting. The model to be developed must be solvable using existing computer codes.
Findings and Conclusions: The model developed in this report can be solved using a branch and bound technique for linear models. The size of the model is potentially very large. Through reasonable constraints, the size of the model can be reduced to a size easily solved on any large computer system. In addition, the model can be adapted to commodities other than tubulars.