Optimal oil tanker size with regard to environmental impact of oil spills |
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| Authors: | Rakesh K Sarin Charles R Scherer |
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| Affiliation: | Graduate School of Management, University of California, Los Angles, California 90024, USA;Engineering Systems Department, University of California, Los Angeles, California 90024, USA |
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| Abstract: | This paper considers optimal tanker size in view of the environmental effects of oil spills. A model is developed that incorporates the tradeoff between small but frequent spills with many tankers, and the relatively less frequent but larger and more concentrated spills with a smaller fleet of larger ships. A procedure is suggested to incorporate the environmental impact of oil spills in the model without quantifying them in monetary units. A closed form solution set for optimal tankers size is obtained and some numerical results are presented. |
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