An oil company has three oil storage points and four oil demand points.

The company needs a shipping schedule that minimizes the transportation cost, does not exceed storage capacities and fulfills all the demands. The demands,

supplies, and cost information are shown in the following table.

a) Formulate the corresponding LP problem.

b) Set up the initial primal tableau.

c) Derive the dual problem and give an economic interpretation of the ob ective function as well as the constraints.

d) Solve the above primal problem using Microsoft Excel. Print out that file. Give a complete report. In other words, you must report 1) the optimal value of the ob ective function, 2) the entire primal optimal solution (including the primal slack variables), 3) the entire dual solution (including the dual slack variables).

Supply Demand Markets Origins Dallas Kansas Tampa Miami | Supply Boston 5 Denver 3 Austin 2 435 3 569 6 100 6 | 200 7 8 400 Demand 200 100 150 250