Distributors Distributors D2 D, $2 D1 D2 $32 $20 $6 $25 $20 S2 $5 $4

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...
icon
Related questions
Question

Please solve all parts

Costs per Barrel to Ship Oil
Tax per Barrel
Distributors
Distributors
D1
D2
D1
D2
S1
$32
$20
$2
$6
S2
$25
$20
S2
$5
$4
An oil company supplies two distributors in the northwest from two outlets, S, and S,.
Distributor D, needs at least 3000 barrels of oil, and distributor D, needs at least 5000
barrels. The two outlets can each furnish up to 5000 barrels of oil. The costs per barrel to ship
the oil are given in the accompanying table. There is also a shipping tax per barrel as given in
the accompanying table. The oil company is determined to spend no more than $32,000 on
shipping tax. Complete parts (a) and (b) below.
(a) How should the oil be supplied to minimize shipping costs?
Outlet S, should send
barrels to distributor D,.
(Simplify your answer.)
Outlet S, should send
barrels to distributor Dɔ.
(Simplify your answer.)
Outlet S, should send
barrels to distributor D,.
(Simplify your answer.)
Outlet S, should send
barrels to distributor D2.
(Simplify your answer.)
The minimized total shipping cost is $
(Simplify your answer.)
(b) Find and interpret the values of any nonzero slack or surplus variables. Select the
correct answer below and fill in the answer box to complete your choice.
(Simplify your answer.)
There is a slack variable that indicates that S, could furnish
more barrels
of oil.
Transcribed Image Text:Costs per Barrel to Ship Oil Tax per Barrel Distributors Distributors D1 D2 D1 D2 S1 $32 $20 $2 $6 S2 $25 $20 S2 $5 $4 An oil company supplies two distributors in the northwest from two outlets, S, and S,. Distributor D, needs at least 3000 barrels of oil, and distributor D, needs at least 5000 barrels. The two outlets can each furnish up to 5000 barrels of oil. The costs per barrel to ship the oil are given in the accompanying table. There is also a shipping tax per barrel as given in the accompanying table. The oil company is determined to spend no more than $32,000 on shipping tax. Complete parts (a) and (b) below. (a) How should the oil be supplied to minimize shipping costs? Outlet S, should send barrels to distributor D,. (Simplify your answer.) Outlet S, should send barrels to distributor Dɔ. (Simplify your answer.) Outlet S, should send barrels to distributor D,. (Simplify your answer.) Outlet S, should send barrels to distributor D2. (Simplify your answer.) The minimized total shipping cost is $ (Simplify your answer.) (b) Find and interpret the values of any nonzero slack or surplus variables. Select the correct answer below and fill in the answer box to complete your choice. (Simplify your answer.) There is a slack variable that indicates that S, could furnish more barrels of oil.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Process selection
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.