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Sunco Oil produces oil at two wells. Well 1 can produce as many as 139000 barrels per day, and well 2 can produce as many
Sunco Oil produces oil at two wells. Well 1 can produce as many as 139000 barrels per day, and well 2 can produce as many as 152000 barrels per day. It is possible to ship oil directly from the wells to Sunco's customers in Los Angeles and New York. Alternatively, Sunco could transport oil either to the port of Mobile or Galveston and then ship it by tanker to New York or Los Angeles. Transhipment capacities through Mobile are bounded by 63000 barrels per day; capacities in Galveston are unlimited. Los Angeles requires 126000 barrels per day, and New York requires 126000 barrels per day. The costs of shipping 1000 barrels between two points are shown in the table below. From Well 1 Well 2 Mobile Galveston Mobile 10 19 To Galveston N.Y. 17 38 24 20 13 18 L.A. 30 29 6 22 What is the minimal transportation costs of meeting oil demands in Los Angeles and New York? Sunco Oil produces oil at two wells. Well 1 can produce as many as 139000 barrels per day, and well 2 can produce as many as 152000 barrels per day. It is possible to ship oil directly from the wells to Sunco's customers in Los Angeles and New York. Alternatively, Sunco could transport oil either to the port of Mobile or Galveston and then ship it by tanker to New York or Los Angeles. Transhipment capacities through Mobile are bounded by 63000 barrels per day; capacities in Galveston are unlimited. Los Angeles requires 126000 barrels per day, and New York requires 126000 barrels per day. The costs of shipping 1000 barrels between two points are shown in the table below. From Well 1 Well 2 Mobile Galveston Mobile 10 19 To Galveston N.Y. 17 38 24 20 13 18 L.A. 30 29 6 22 What is the minimal transportation costs of meeting oil demands in Los Angeles and New York
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