In Problem 5-8, suppose that the capacity of refinery 3 is 6 million gallons only and that
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In Problem 5-8, suppose that the capacity of refinery 3 is 6 million gallons only and that distribution area 1 must receive all its demand. Additionally, any shortages at areas 2 and 3 will incur a penalty of 5 cents per gallon.
(a) Formulate the problem as a transportation model.
(b) Determine the optimum shipping schedule.
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