14 Oilco has oil fields in San Diego and Los Angeles. The San Diego field can produce...

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14 Oilco has oil fields in San Diego and Los Angeles. The San Diego field can produce 500,000 barrels per day, and the Los Angeles field can produce 400,000 barrels per day.

Oil is sent from the fields to a refinery, either in Dallas or in Houston (assume that each refinery has unlimited capacity). It costs $700 to refine 100,000 barrels of oil at Dallas and $900 at Houston. Refined oil is shipped to customers in Chicago and New York. Chicago customers require 400,000 barrels per day of refined oil; New York customers require 300,000. The costs of shipping 100,000 barrels of oil (refined or unrefined) between cities are given in Table 74. Formulate a balanced transportation model of this situation.

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