2 Sunco Oil produces oil at two wells. Well 1 can produce as many as 150,000 barrels per day, and well 2 can produce as many as 200,000 barrels per day. It is possible to ship oil directly from the wells to Sunco's customers in Los Angeles and New York. Alternatively, Sunco could transport oil to the ports of Mobile and Galveston and then ship it by tanker to New York or Los Angeles. Los Angeles requires 160,000 barrels per day, and New York requires 140,000 barrels per day. The costs of shipping 1,000 barrels between two points are shown in Table 61. Formulate a transshipment model (and equivalent transportation model) that could be used to minimize the transport costs in meeting the oil demands of Los Angeles and New York.

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transportation problem, and transportation problem mathematical formulation

**Table 61: Shipping Costs Between Locations**

This table represents the shipping costs between various locations, measured in monetary units. The rows indicate the origin points, while the columns indicate the destination points. Costs are specified for each route allowed between locations.

**Table Details:**

- **From Well 1:** 
  - To Mobile: $10
  - To Galveston: $13
  - To N.Y.: $25
  - To L.A.: $28

- **From Well 2:** 
  - To Mobile: $15
  - To Galveston: $12
  - To N.Y.: $26
  - To L.A.: $25

- **From Mobile:** 
  - To Galveston: $6
  - To N.Y.: $16
  - To L.A.: $17

- **From Galveston:** 
  - To N.Y.: $14
  - To L.A.: $16

- **From N.Y.:** 
  - To L.A.: $15

**Note:** Dashes indicate shipments that are not allowed between those specific locations. 

This table is useful for understanding logistics and cost management in supply chain operations involving these locations.
Transcribed Image Text:**Table 61: Shipping Costs Between Locations** This table represents the shipping costs between various locations, measured in monetary units. The rows indicate the origin points, while the columns indicate the destination points. Costs are specified for each route allowed between locations. **Table Details:** - **From Well 1:** - To Mobile: $10 - To Galveston: $13 - To N.Y.: $25 - To L.A.: $28 - **From Well 2:** - To Mobile: $15 - To Galveston: $12 - To N.Y.: $26 - To L.A.: $25 - **From Mobile:** - To Galveston: $6 - To N.Y.: $16 - To L.A.: $17 - **From Galveston:** - To N.Y.: $14 - To L.A.: $16 - **From N.Y.:** - To L.A.: $15 **Note:** Dashes indicate shipments that are not allowed between those specific locations. This table is useful for understanding logistics and cost management in supply chain operations involving these locations.
Sunco Oil operates two wells with different production capabilities. Well 1 can produce up to 150,000 barrels of oil per day, while Well 2 can produce up to 200,000 barrels per day. The company has the option to ship oil directly from these wells to customers located in Los Angeles and New York. An alternative shipping option involves transporting oil to the ports of Mobile and Galveston, and then transferring it via tanker to New York or Los Angeles.

Customer demand for oil includes 160,000 barrels per day for Los Angeles and 140,000 barrels per day for New York. The costs associated with shipping 1,000 barrels between various points are detailed in Table 61. The task is to develop a transshipment model or an equivalent transportation model that will minimize transport costs while satisfying the oil demands of Los Angeles and New York.
Transcribed Image Text:Sunco Oil operates two wells with different production capabilities. Well 1 can produce up to 150,000 barrels of oil per day, while Well 2 can produce up to 200,000 barrels per day. The company has the option to ship oil directly from these wells to customers located in Los Angeles and New York. An alternative shipping option involves transporting oil to the ports of Mobile and Galveston, and then transferring it via tanker to New York or Los Angeles. Customer demand for oil includes 160,000 barrels per day for Los Angeles and 140,000 barrels per day for New York. The costs associated with shipping 1,000 barrels between various points are detailed in Table 61. The task is to develop a transshipment model or an equivalent transportation model that will minimize transport costs while satisfying the oil demands of Los Angeles and New York.
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