ISE$301$ Modelling and Optimization $2-$ Assignment $1$

$(100$p$)$ Well Petroleum $($WP$)$ is investigating two potential drilling sites for reaching four possible

oil wells $($targets$).$ The table below provides the initial setup costs at each of the two sites and the

cost of drilling from site $i$ to target $j$ where iin$\{1,2\}$ and jin$\{1,2,3,4\}.$ Wells $3$ and $4$ should not

be drilled from the same site. WP is trying to decide which site should be used to drill each target

well so as to minimize its operational cost.

Formulate an IP model for this problem $(50$p$)$ and use Excel Solver to solve the problem on a

worksheet $(50$p$).$ Your conceptual model and Excel file should be very neat, clear and

understandable, and include all necessary details $($see class examples$).$