#4 The cost of refined oil when shipped via the Malacca Straits to Japan in dollars per kiloliter was given (Uchiyama, 1968) as the linear sum of the crude oil cost, the insurance, customs, freight cost for the oil, loading and unloading cost, sea berth cost, submarine pipe cost, storage cost, tank area cost, refining cost, and freight cost of products as 56.33at 0.4925 c = c₁₂ + c₁₂ + cx + 58.06-0.3017 + 2.246at 0.7952 9.598x10-5 ip + + (nt + 1.2q) 0.861 9 0.225a(nt +1.2q) + +14.069 0.1999 +2.914x10-4q0.671 9 where: a = annual fixed charges, fraction (0.20) Ce crude oil price, $/kL (12.50) c₁ = insurance cost, $/kL (0.50) Cx = customs cost, $/kL (0.90) i interest rate (0.10) n = number of ports = 2 p cost of land, $/m² = 7000 q=refinery capacity, bbl/day t = tanker size, kL Calculate the tanker size and refinery capacity to yield minimum cost.