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Chemco operates two production facilities that manufacture achemical compound for two customers who demand ( respectively ) 7 5 0 and 8 4 0 tons

Chemco operates two production facilities that manufacture achemical compound for two customers who demand (respectively)750 and 840 tons per month. Themonthly production capacity of production facility 1 is 900 tons and that of production facility 2 is 730tons. The cost per ton of compound produced is $32 at production facility 1 and $37 at productionfacility 2. Raw material for the two production facilities are provided by three suppliers, who are eachcontracted to provide as much as 600 tons of raw material at a cost of $200/ton (from supplier 1),$208/ton (from supplier 2), and $213/ton (from supplier 3).(You may assume 1 ton of raw materialproduces 1 ton of the compound.)Chemco assumes the transportation cost of both the raw material and the final compound. Rawmaterial can be transported directly from any supplier to either production facility at a per unit costgiven in the following table:ToFrom Facility 1 Facility 2Supplier 11013Supplier 2815Supplier 3149The final compound can be transported directly from either production facility to either customer, or itcan be transported through Chemcos warehouse; however, the total amount of compound transportedthrough the warehouse cannot exceed 200 tons. The costs per ton of transporting the final compoundare given in the following table:ToFrom Cust 1 Cust 2 WarehouseFacility 1162Facility 2321Warehouse 13
3Part a: Formulate a minimum cost flow model to determine a minimum cost plan for transporting rawmaterial and producing and transporting compound. (Note: For this problem, you should provide adrawing of the minimum-cost flow network. Explain in words what nodes and arcs represent, and labelnodes and arcs with all relevant data. You need not solve the optimization modelProblem 3(Adapted from Taha, 2003): Chemco operates two production facilities that manufacture a
chemical compound for two customers who demand (respectively)750 and 840 tons per month. The
monthly production capacity of production facility 1 is 900 tons and that of production facility 2 is 730
tons. The cost per ton of compound produced is $32 at production facility 1 and $37 at production
facility 2. Raw material for the two production facilities are provided by three suppliers, who are each
contracted to provide as much as 600 tons of raw material at a cost of $(200)/() ton (from supplier 1),
$(208)/() ton (from supplier 2), and $(213)/() ton (from supplier 3).(You may assume 1 ton of raw material
produces 1 ton of the compound.)
Chemco assumes the transportation cost of both the raw material and the final compound. Raw
material can be transported directly from any supplier to either production facility at a per unit cost
given in the following table:
The final compound can be transported directly from either production facility to either customer, or it
can be transported through Chemco's warehouse; however, the total amount of compound transported
through the warehouse cannot exceed 200 tons. The costs per ton of transporting the final compound
are given in the following table:
Part a: Formulate a minimum cost flow model to determine a minimum cost plan for transporting raw
material and producing and transporting compound. (Note: For this problem, you should provide a
drawing of the minimum-cost flow network. Explain in words what nodes and arcs represent, and label
nodes and arcs with all relevant data. You need not solve the optimization model.)Problem 3(Adapted from Taha, 2003): Chemco operates two production facilities that manufacture a
chemical compound for two customers who demand (respectively)750 and 840 tons per month. The
monthly production capacity of production facility 1 is 900 tons and that of production facility 2 is 730
tons. The cost per ton of compound produced is $32 at production facility 1 and $37 at production
facility 2. Raw material for the two production facilities are provided by three suppliers, who are each
contracted to provide as much as 600 tons of raw material at a cost of $200? ton (from supplier 1),
$208? ton (from supplier 2), and $213? ton (from supplier 3).(You may assume 1 ton of raw material
produces 1 ton of the compound.)
Chemco assumes the transportation cost of both the raw material and the final compound. Raw
material can be transported directly from any supplier to either production facility at a per unit cost
given in the following table:
The final compound can be transported directly from either production facility to either customer, or it
can be transported through Chemco's warehouse; however, the total amount of compound transported
through the warehouse cannot exceed 200 tons. The costs per ton of transporting the final compound
are given in the following table:
Part a: Formulate a minimum cost flow model to determine a minimum cost plan for transporting raw
materia
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