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You are the transportation manager and are responsible for scheduling the daily delivery of the blended oil ( standard oil, premium oil and green oil
You are the transportation manager and are responsible for scheduling the daily delivery of the blended oilstandard oil, premium oil and green oil to stations with the minimum total shipping cost.
Table summarizes the shipping cost per litre of the blended oil. Be aware that each shipment contains one blended oil only.
Table : Shipping cost per litre of the standard oil, premium oil and green oil
SUPPLYDEMAND STATION STATION STATION STATION STATION
STANDARD OIL $ $ $ $ $
PREMIUM OIL $ $ $
GREEN OIL $ $ $ $
Note: If a cost is missing in the table, the corresponding route is not available
Assume today is and you need to schedule the delivery. The total supply and demand are listed below.
Table : Total Supply of Engine Oil on
Product Standard Oil Premium Oil Green Oil
Total Supply liters
Table : Total demand for Engine Oil on
Stations Station Station Station Station Station
Total Demand liters
However, when scheduling the delivery, you noticed that the total supply of was not enough, so you contacted an engine oil retailer to provide extra Green Oil and asked the retailer to deliver the difference to each station directly. The retailer charges $ per liter for shipping in general. Here you are the transportation manager, and you only consider the shipping cost, including those form the retailer to each station
There are several special requirements that you must satisfy:
Station only needs standard oil and premium oil and the amount of premium should be at least twice the standard oil
Station requires at least liters of standard oil and liters of premium
Questions:
Design the LP network for this transportation schedule. Set up an LP model for this and use Solver to solve the problem
What is the total shipping cost?
How many units do you need to ask the retailer to deliver and deliver to which station?
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