H

In a carbon supply chain, the crude oil is pumped from the fields in KSA and stored in the sea port for the export. The setup cost of pumping the crude oil to the sea port is equal to SAR 120,000. Large tankers (ships) are used to transport the crude oil oversea to a refinery in India owned by Aramco. After receiving the crude oil at the refinery, it is processed and stored as refined oil. The transportation cost is estimated at SAR 220,000 per shipment and takes about 3days. The value of a barrel of crude oil is about SAR 200 and of refined oil is about SAR 1,000. The weekly demand of refined oil is stable and is equal to DE barrels. Assume the same carrying charge at the sea port and in the refinery of CR% of a barrel cost per week. a. Find the optimal order quantities of the refinery and the sea port tanks. b. Find the weekly total relevant inventory cost of the supply chain. c. Find the optimal time between orders of the sea port and of the refinery. d. Find the optimal inventory order level at which the refinery should order.

DE = 4890

CR=11.5%