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2. The Ayatola Oil Company controls two oil fields. Field 1 can produce up to 40 million barrels of oil per day, and field 2 can produce up to 50 million barrels of oil per day. At field 1, it costs $3 to extract and refine a barrel of oil; at field 2, the cost is $2. Ayatola sells oil to two countries: England and Japan. The shipping cost per barrel is shown in Table 12. Each day, England is willing to buy up to 40 million barrels (at $6 per barrel), and Japan is willing to buy up to 30 million barrels (at $6.50 per barrel). Formulate a balanced transportation problem to maximize Ayatola's profits. TABLE 12 From ($) Field 1 Field 2 England 1 2 To ($) Japan 2 1

2. The Ayatola Oil Company controls two oil fields. Field 1 can produce up to 40 million barrels of oil per day, and field 2 can produce up to 50 million barrels of oil per day. At field 1, it costs $3 to extract and refine a barrel of oil; at field 2, the cost is $2. Ayatola sells oil to two countries: England and Japan. The shipping cost per barrel is shown in Table 12. Each day, England is willing to buy up to 40 million barrels (at $6 per barrel), and Japan is willing to buy up to 30 million barrels (at $6.50 per barrel). Formulate a balanced transportation problem to maximize Ayatola's profits. TABLE 12 From ($) Field 1 Field 2 England 1 2 To ($) Japan 2 1

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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2. The Ayatola Oil Company controls two oil fields. Field 1 can produce up to 40 million barrels of oil per day, and field 2 can produce up to 50 million barrels of oil per day. At field 1, it costs $3 to extract and refine a barrel of oil; at field 2, the cost is $2. Ayatola sells oil to two countries: England and Japan. The shipping cost per barrel is shown in Table 12. Each day, England is willing to buy up to 40 million barrels (at $6 per barrel), and Japan is willing to buy up to 30 million barrels (at $6.50 per barrel). Formulate a balanced transportation problem to maximize Ayatola's profits. TABLE 12 From ($) Field 1 Field 2 England 12 2 To ($) Japan 2 1
Transcribed Image Text:2. The Ayatola Oil Company controls two oil fields. Field 1 can produce up to 40 million barrels of oil per day, and field 2 can produce up to 50 million barrels of oil per day. At field 1, it costs $3 to extract and refine a barrel of oil; at field 2, the cost is $2. Ayatola sells oil to two countries: England and Japan. The shipping cost per barrel is shown in Table 12. Each day, England is willing to buy up to 40 million barrels (at $6 per barrel), and Japan is willing to buy up to 30 million barrels (at $6.50 per barrel). Formulate a balanced transportation problem to maximize Ayatola's profits. TABLE 12 From ($) Field 1 Field 2 England 12 2 To ($) Japan 2 1
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