Question
PLEASE DO NOT COPY OTHER EXISTING ANSWERS, THANKYOU! Please use Excel Open Solver to solve this question. Sunco Oil produces oil at two wells. Well
PLEASE DO NOT COPY OTHER EXISTING ANSWERS, THANKYOU!
Please use Excel Open Solver to solve this question.
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 Suncos customers in Los Angeles and New York. Alternatively, Sunco could transport oil to the ports 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 cost costs of shipping 1000 barrels between two points are shown in the following table.
1. Now, assume that before being shipped to Los Angeles or New York, all oil produced at the wells must be refined at either Galveston or Mobile. To refine 1000 barrels of oil costs $12 at Mobile and $10 at Galveston. Assuming that both Mobile and Galveston has infinite refinery capacity. Please minimize the daily cost of transporting and refining the oil requirements of Los Angeles and New York. (USE EXCEL OPEN SOLVER)
\begin{tabular}{l|l|l|l|l|l|l} \multirow{2}{*}{ From } & \multicolumn{9}{|c}{ To } \\ \cline { 2 - 7 } & Well 1 & Well 2 & Mobile & Galveston & New York & LA \\ \hline Well 1 & $0 & --- & $10 & $13 & $25 & $28 \\ \hline Well 2 & --- & $0 & $15 & $12 & $26 & $25 \\ \hline Mobile & --- & --- & $0 & $6 & $16 & $17 \\ \hline Galveston & --- & --- & $6 & $0 & $14 & $16 \\ \hline New York & --- & --- & --- & --- & $0 & $15 \\ \hline LA & --- & --- & --- & --- & $15 & $0 \end{tabular}Step by Step Solution
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