a certain optimization model for a utilities company would like to transfer energy to its customers such that its daily cost of transmission is minimized. It has nuclear reactors in each of the following cities: Sacramento, Houston and Atlanta. The daily energy capacities of these reactors are 4150 KwH, 3650 KwH, and 5000 KwH respectively.

The company's clients are in L.A., Birmingham and Denver and have daily demands of 2500 KwH, 4500 KwH and 5500 KwH respectively. These demands must be satisfied. The following table gives the dollar cost of unit energy transfers from source to destination cities.

Using the decision variables:

X_SL = Number of KwH transferred from Sacramento to L.A. X_SB = Number of KwH transferred from Sacramento to Birmingham X_SD = Number of KwH transferred from Sacramento to Denver X_HL = Number of KwH transferred from Houston to L.A. X_HB = Number of KwH transferred from Houston to Birmingham XHD = Number of KwH transferred from Houston to Denver X_AL = Number of KwH transferred from Atlanta to L.A. X_AB = Number of KwH transferred from Atlanta to Birmingham X_AD = Number of KwH transferred from Atlanta to Denver

the utilities company comes up with the following optimization model:

min 46X_SL + 65X_SB + 95X_SD + 55X_HL + 25X_HB + 32X_HD + 68X_AL + 44X_AB + 58X_AD

subject to:

X_SL + X_SB + X_SD <= 4150, X_HL + X_HB + X_HD <= 3650, X_AL + X_AB + X_AD <= 5000, XS_L + X_HL + X_AL = 2500, X_SB + X_HB + X_AB = 4500, X_SD + X_HD + X_AD = 5500,

all decision variables are non-negative.

Using POMS_5010_MidTerm_Excel_Problem.xlsx, solve the company's optimization model to obtain their minimum energy transportation cost.

	A.	$540,400
	B.	$565,450
	C.	$791,900
	D.	$751,500