An Oil Company Wants to Create Lube Oil, Gasoline and Diesel

Multiple Choice

An oil company wants to create lube oil, gasoline and diesel fuel at two refineries. There are two sources of crude oil. Consider arc 2-4. The per unit shipping cost of crude B from source 2 (node 2) to refinery 2 (node 4) is $11 and the yield is 85 percent. The following network representation depicts this problem. What is the balance of flow constraint for node 3 (Refinery 1) ?

A) X₁₃ + X₂₃ - .95 X₃₅ - .90 X₃₆ -.90 X₃₇ = 0
B) .80 X₁₃ + .95 X₂₃ - X₃₅ - X₃₆ -X₃₇ = 0
C) .80 X₁₃ + .95 X₂₃ - .90 X₃₆ - .90 X₃₇ $\ge$ 0
D) X₁₃ + X₂₃ - X₃₅ - X₃₆ - X₃₇ $\ge$ 0