Abstract
In the oil production distribution network, there are three main nodes, namely the supply node, the transshipment node, and the demand node. The pattern of distribution of oil production from the supply node to the demand node is very diverse and can affect the costs to be incurred. Therefore, a company must be able to determine the right distribution pattern, so that the costs incurred are optimal. This paper intends to conduct a study of how to determine and calculate the distribution patterns and the minimum total costs incurred, using the primal-dual linear program method. Based on the results of the case analysis, it is known that the number of supply commodities will be the same as the number of demand commodities, but the distribution from each source does not necessarily have the same capacity and costs. Therefore, the distribution pattern is determined based on the existing cost and capacity, so that cost optimization can be achieved.
Highlights
The word production is used by economists to describe the making of goods and services that have economic value
The production of goods and services must go through stages, which include design, manufacture, transportation, warehousing, sales, and marketing (Iheagwara et al, 2014)
Crude oil is channeled through pipes which are sometimes very broad and complicated, whereas to separate oil and gas is done by channeling oil to oil refineries and gas flow is channeled to gas factories
Summary
The word production is used by economists to describe the making of goods and services that have economic value. The entire network from oil wells to consumers stretches to almost half the globe This kind of production process has many complex interrelated constraints with various factors, so it requires careful planning (Turkay, 1998; Boo et al, 2013). Production actors must be able to obtain optimal costs but the demand for final goods and services does not disappoint consumers (Antunes & Gomes, 2008). One method of operations research is linear programming Using this programming an oil production and transportation problem can be made into a mathematical model and an optimal solution can be obtained, namely obtaining a minimum total cost. In this paper, a primal-dual linear program is used, and to simplify the calculation a program is used in a linear program, namely POM
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Research in Community Services
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
