Question: In Problem 5-8, suppose that the daily demand at area 3 drops to 4 million gallons. Surplus production at refineries 1 and 2 is diverted

In Problem 5-8, suppose that the daily demand at area 3 drops to 4 million gallons. Surplus production at refineries 1 and 2 is diverted to other distribution areas by truck. The transportation cost per 100 gallons is $1.50 from refinery 1 and $2.20 from refinery 2. Refinery 3 can divert its surplus production to other chemical processes within the plant.

(a) Construct the associated transportation model.

(b) Determine the optimum shipping schedule in the network.

TABLE 5.26 Mileage Chart for Problem 5-8 Distribution area 1 2 3

Problem 5-8

. Three refineries with daily capacities of 6, 5, and 8 million gallons, respectively, supply three distribution areas with daily demands of 4, 8, and 7 million gallons, respectively. Gasoline is transported to the three distribution areas through a network of pipelines. The transportation cost is 10 cents per 1000 gallons per pipeline mile. Table 5.26 gives the mileage between the refineries and the distribution areas. Refinery 1 is not connected to distribution area 3.

(a) Construct the associated transportation model.

(b) Determine the optimum shipping schedule in the network.

TABLE 5.26 Mileage Chart for Problem 5-8 Distribution area 1 2 3 Refinery 1 Refinery 2 Refinery 3 180 180 300 800 900 220 200 120

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