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Answer using Excel and please show all formulas Sunco Oil produces oil at two wells. Well 1 can produce up to 150,000 barrels per day,
Answer using Excel and please show all formulas
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 port 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 2 shipping per 1000 barrels between various locations are shown in the table below, where a blank indicates shipments that are not allowed. Use Excel to determine how to minimize the transportation costs in meeting the oil demand of LA and NY. You must indicate how many barrels are transported on each selected arrow (arc) and indicate the total shipping cost. 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 port 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 2 shipping per 1000 barrels between various locations are shown in the table below, where a blank indicates shipments that are not allowed. Use Excel to determine how to minimize the transportation costs in meeting the oil demand of LA and NY. You must indicate how many barrels are transported on each selected arrow (arc) and indicate the total shipping costStep by Step Solution
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