Example 2 (From Bazarra and Jarvis)
Transport 20,000,000 barrels of oil from Dhahran, Saudi Arabia to Rotterdam (4 Mil.), Marseilles (12 Mil) and Naples (4 Mil.) in Europe
Routes
- Ship oil around Africa to
- Rotterdam $1.20/barrel
- Marseilles $1.40/barrel
- Naples $1.40/barrel
- Dhahran -> Suez -> Suez Canal -> Port Said
- $0.30/barrel from Dhahran to Suez
- $0.20/barrel through Suez Canal
- Port Said to
- Rotterdam $0.25
- Marseilles $0.20
- Naples $0.15