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.

 

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