Question: Please solve using MS excel with Solver / Solvertable (Explain steps for rating) Exxon Distribution Services Distribution Services for Exxon needs to plan how they

Please solve using MS excel with Solver / Solvertable (Explain steps for rating)
Exxon Distribution Services Distribution Services for Exxon needs to plan how they will service five of their refineries. They plan to use three active wells that are in the region. Well 1 has a capacity of 93 thousand barrels per day (TBD), Well 2 can produce 88 TBD, and Well 3 can produce 95TBD. The refineries being serviced are all along the Gulf coast and are operating at stable demand levels. Additionally, three pumping stations are required to move the oil from the wells along the pipeline to the refineries. Oil can flow from any one of the wells to any of the pump stations, and from any one of the pump stations to any of the refineries. Distribution Services has the responsibility or minimizing the transfer costs from the wells to the refineries. The refinery requirements are as follows: R1 R2 R3 R4 R5 Refinery Requirements 30 57 48 91 49 The Distribution Services uses their cost accounting system to assign transfer charges by the segment of pipeline being used. The daily costs are given in the tables below, in dollars per thousand barrels. Transfer Costs/TBD From Well 1 Well 2 Well 3 Pump A $1.52 $1.70 1,45 Pump B $1.60 $1.63 $1.57 Pump C $1.40 $1.55 $1.30 From R1 R2 R3 R4 R5 Pump A Pump B Pump C $5.15 $5.12 $5.32 $5.69 $5.37 $6.16 $6.13 $6.05 $6.25 $5.63 $6.12 $6.17 $5.80 $5.71 $5.87 What is the minimum cost of providing oil to the refineries? Which wells are used to capacity in the optimum transfer scheduleStep by Step Solution
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