Question: Network Design Case Study You work for a large US oil company that recently acquired a small European regional gasoline distributor. You have been tasked



Network Design Case Study You work for a large US oil company that recently acquired a small European regional gasoline distributor. You have been tasked with proposing the best design for your company's supply chain for distributing 18,000,000 barrels of oil in the European market from your refinery in Dhahran, Saudi Arabia Your company also has terminals near ports in Suez and Alexandria in Egypt that will be used as intermediate transshipment points between the refinery and the final destination ports for markets at Marseille in France, Naples in Italy, and Rotterdam in the Netherlands. Transportation costs between locations in the network, capacity and processing cost at each terminal, and demand in each market are given in the tables below. Note that due to trade agreements that not all markets can be served by all terminals. Shipping Cost (\$/barrel) To Dhahran Alexandria Suez Rotterdam Marseille Naples Terminal Processing Capacity (barrels) and Processing Cost (\$/barrel) You decide to make Marseilles an intermediate transshipment point. Based on the information provided, what is the minimum total cost for this new network design? Question 2 1 pts How many barrels should you ship between Dhahran and Alexandria in this new network design? How many barrels should you ship between Dhahran and Alexandria in this new network design? Question 3 1 pts How much would the transportation cost per barrel from Marseille to Naples need to increase before your optimal solution changes
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