How to transport costs in meeting oil demands of los angeles

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Reference no: EM134015618

Assignment:

An oil company produces oil from two wells. Well 1 can produce up to 150,000 barrels per day, and well 2 can produce up to 200,000 barrels per day. It is possible to ship oil directly from the wells to the company's customers in Los Angeles and New York. Alternatively, the company could transport oil to the ports of Mobile and Galveston and then ship it by tanker to New York or Los Angeles, respectively. Los Angeles requires 160,000 barrels per day, and New York requires 140,000 barrels per day. The costs of shipping 1000 barrels between various locations are shown in the file P14_88.xlsx, where a blank indicates shipments that are not allowed. Determine how to minimize the transport costs in meeting the oil demands of Los Angeles and New York.

Reference no: EM134015618

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