Question
Amco Oil Company owns two oil fields, in Oklahoma and California.Oklahoma field can produce up to 450,000 barrels per day and the California field can
Amco Oil Company owns two oil fields, in Oklahoma and California.Oklahoma field can produce up to 450,000 barrels per day and the California field can produce up to 850,000 barrels per day.The crude oil is sent to a refinery, either inBaton Rougeor in Houston.Baton Rougerefinery can refine 600,000 barrels per day and the Houston refinery has a capacity of 750,000 barrels per day.Refining 1,000 barrels costs $3500 atBaton Rougeand $4500 at Houston.Refined product is shipped to Atlanta, Chicago, Cleveland and Boston and the daily requirements are 300,000, 400,000, 200,000 and 300,000 barrels, respectively.The shipping costs per 1,000 barrels are given in the network below.Set up a Solver model for this transshipment problem and determine the minimum cost transportation and refining schedule to meet all the demands.Set up flows in 1000 barrels.
Can you please show how I would set this up with excel solver to get started?
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