The supplement to this chapter on the book’s website presents a case study of how the Texago Corp. solved many transportation problems to help make its decision regarding where to locate its new oil refinery. Management now needs to address the question of whether the capacity of the new refinery should be made somewhat larger than originally planned. This will require formulating and solving some additional transportation problems. A key part of the analysis then will involve combining two transportation problems into a single linear programming model that simultaneously considers the shipping of crude oil from the oil fields to the refineries and the shipping of final product from the refineries to the distribution centers. A memo to management summarizing your results and recommendations also needs to be written.

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