Create a linear programming model in order to maximize profit. Keep in mind each mill must operate at least six days out of seven. How does it differ from the original given in Exhibit 4? What are the benefits of this optimization?

Northwest Newsprint Mill Spruce Mills Naomee Mills Duchesne Capacity 166,320 272,340 265,077 Cost Min Util 390.00 0.8571429 415.00 0.8571429 415.00 0.8571429 Transportation costs ($US/ton) Mill Spruce Mills Naomee Mills Duchesne Seattle NA Chicago 89.77 Distribution Center Dallas New Orleans Denver Los Angeles San Francis Vancouver Calgary 162.24 166.18 151.77 NA 151.11 NA NA 204.13 195.08 162.83 147.46 115.49 72.42 77.50 210.42 200.62 142.82 150.14 124.83 42.17 87.94 128.82 46.68 52.80 97.17 Demand (tons) Seattle Chicago Dallas New Orleans Denver Los Angeles San Francisco Vancouver Calgary Projected Optimistic Pessimistic Delivered price 40,727 45,028 29,557 750 55,608 61,481 45,518 750 92,680 102,468 75,863 750 92,680 102,468 75,863 750 23,832 26,349 19,507 750 211,841 234,213 173,401 750 52,960 58,553 43,350 750 32,581 36,022 23,646 700 8,145 9,006 5,911 700 Exhibit 4 THE ORIGINAL 1995 ALLOCATION (tonnes delivered) Spruce Mills Producing Mill Naomee Mills 40,727 Duchesne 55,608 64,976 27,704 92,680 Distribution Center Seattle Chicago Dallas New Orleans Denver Los Angeles San Francisco Vancouver Calgary 23,832 22,401 189,440 52,960 32,581 8,145