ABSTRACT
Consider an oil-drilling rig that is 6.5 miles offshore. The drilling rig is to be connected by an underwater pipe to a pumping station. The pumping station is connected by land-based pipe to a refinery, which is 15.7 miles down the shoreline from the drilling rig (see Figure 3.1). The underwater pipe costs $32,575 per mile, and the land-based pipe costs $14,348 per mile. You are to determine where to place the pumping station to minimize cost of the pipe as shown in the figure.
