Figure $1$: Alaskan Railroad Segments

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Alaskan Railroad is an independent, stand$-$alone railroad operaon not connected to any other rail

service in North America. As a result, rail shipments between Alaska and the rest of North America must

be shipped by truck for thousands of miles or loaded onto ocean$-$going vessels and transported by sea.

Alaskan Railroad recently began talks with the naon of Canada about expanding its railroad lines to

connect with the North American railway system. Figure $1$ summarizes the various rail segments

$($associated costs in millions of U$.$S$.$ dollars$)$ that could be built. The North American railroad system

currently provides service to New Hazelton and Chetwynd. Alaskan Railroad would like to expand its

railway so as to be able to reach one of these cies from Skagway and Fairbanks.

Part $1.$ Implement a network flow model to determine the least expensive way to connect the city of

Fairbanks to either New Hazelton or Chetwynd. You should include Skagway and its connecons in the

network model for Part $1,$ even though Skagway will not be part of the soluon. This is recommended so

that you can use the same model $($with some modificaons$)$ for Part $2.$

Part $2.$ Modify the model from Part $1$ to determine the least expensive way to connect the cies of

Fairbanks AND Skagway to either New Hazelton or Chetwynd. If you included Skagway in your model for

Part $1,$ you can copy that model for Part $2.$ You will need to modify the model to include Skagway,

parcularly addressing the cost of any track used by both cies to get to the desnaon.

a$.$Conceptual understanding of the network and implementaon of dummy

nodes.

b$.$Excel Model. The formulas are implemented correctly and produces accurate

soluons.

c$.$Spreadsheet Design. The model is easy to understand and logical$.$ The various

parts of the model are clearly labeled.

d$.$What is the opmal soluon? What nodes connect Fairbanks$/$Skayway with the

North American Railway system in the opmal soluon for Part $1$ and $2?$ What is the cost for

each part?