Sunco Oil produces oil at two wells. Well 1 canproduce up to 150,000 barrels per day, and well 2 canproduce up to 200,000 barrels per day. It is possible toship oil directly from the wells to Sunco’s customersin Los Angeles and New York. Alternatively,Sunco could transport oil to the ports of Mobile andGalveston and then ship it by tanker to New Yorkor Los Angeles. Los Angeles requires 160,000 barrelsper day, and New York requires 140,000 barrels perday. The costs of shipping 1000 barrels betweenvarious locations are shown in the file P05_55.xlsx,where a blank indicates shipments that are not allowed.Determine how to minimize the transport costs inmeeting the oil demands of Los Angeles and New York.
Sunco Oil produces oil at two wells. Well 1 can
produce up to 150,000 barrels per day, and well 2 can
produce up to 200,000 barrels per day. It is possible to
ship oil directly from the wells to Sunco’s customers
in Los Angeles and New York. Alternatively,
Sunco could transport oil to the ports of Mobile and
Galveston and then ship it by tanker to New York
or Los Angeles. Los Angeles requires 160,000 barrels
per day, and New York requires 140,000 barrels per
day. The costs of shipping 1000 barrels between
various locations are shown in the file P05_55.xlsx,
where a blank indicates shipments that are not allowed.
Determine how to minimize the transport costs in
meeting the oil demands of Los Angeles and New York.
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