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.
Answer to relevant QuestionsReconsider the P & T Co. problem presented in Sec. 9.1. You now learn that one or more of the shipping costs per truckload given in Table 9.2 may change slightly before shipments begin. Use Solver to generate the Sensitivity ...The MJK Manufacturing Company must produce two products in sufficient quantity to meet contracted sales in each of the next three months. The two products share the same production facilities, and each unit of both products ...The Texago Corporation has four oil fields, four refineries, and four distribution centers. A major strike involving the transportation industries now has sharply curtailed Texago’s capacity to ship oil from the oil fields ...The Makonsel Company is a fully integrated company that both produces goods and sells them at its retail outlets. After production, the goods are stored in the company’s two warehouses until needed by the retail outlets. ...Consider the minimum cost flow problem shown below, where the bi values are given by the nodes, the cij values are given by the arcs, and the finite uij values are given in parentheses by the arcs. Obtain an initial BF ...
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