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Question 2 . ( 3 0 Points ) StampOil owns oil sands in Fort McMurray, Cold Lake, and Peace River. Theyalso have hired refining capacity

Question 2.(30 Points) StampOil owns oil sands in Fort McMurray, Cold Lake, and Peace River. Theyalso have hired refining capacity from facilities located in Edmonton, Strathcona, and Burnaby. Theyhave contracted with customers located in Denver, Vancouver, and Sarnia for the refined oil. Supposethat existing pipelines connect each oil sand to each refinery and each refinery to each customer point.Edmonton and Strathcona refineries are also connected via a two-way pipeline, meaning that oil canflow in any direction desired. Tables 69 below summarizes all relevant data. Based on the optimaldistribution plan, StampOil will rent pipeline capacity from the operators.Use the Minimum Cost Network template to solve the following problems.a) Find the optimal distribution plan from the oil sands to the demand points. Tabulate and explainthe optimal distribution plan. From which pipelines should StampOil rent capacity? How muchprocessing capacity does StampOil need at the Edmonton refinery?b) Modify your base model to accommodate a total processing capacity at each refinery. Assumethat Edmonton refinery has a processing capacity of 200,000 barrels per day dedicated toStampOil. Tabulate and explain the new distribution plan. How is this different than the plan ofpart (a)?c) Now assume that CN can carry StampOils oil from any oil sands to any refinery for $15 per 1000barrels and from any refinery to any demand point for $25 per 1000 barrels per day. Develop anew optimal distribution plan for StampOil if the demand at Denver increases to 300,000 barrelsper day. Assume that each railcar can hold 700 barrels of oil and CN can allocate up to 50 railcarsto StampOil. Tabulate and explain the optimal solution. Ignore any capacity at Edmontonrefinery.T

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