The U.S. government is auctioning off oil leases at two sites: 1 and 2. At each site, 100 000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes, and Alexis Pickens are bidding for the oil. Government rules state that no bidder can receive more than 40% of the land being auctioned. Cliff has bid $1,000/acre for site 1 land and $2,000/acre for site 2 land. Blake has bid $900/acre for site 1 land and $2,200/acre for site2 land. Alexis has bid $1,100/acre for site 1 land and$1,900/acre for site 2 land. a. Formulate a balanced transportation model to maximize the government’s revenue. b. Use the minimum-cost method to find the basic feasible solution for this problem.
The U.S. government is auctioning off oil leases at two sites: 1 and 2. At each site, 100 000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes, and Alexis Pickens are bidding for the oil. Government rules state that no bidder can receive more than 40% of the land being auctioned. Cliff has bid $1,000/acre for site 1 land and $2,000/acre for site 2 land. Blake has bid $900/acre for site 1 land and $2,200/acre for site2 land. Alexis has bid $1,100/acre for site 1 land and$1,900/acre for site 2 land. a. Formulate a balanced transportation model to maximize the government’s revenue. b. Use the minimum-cost method to find the basic feasible solution for this problem.
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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The U.S. government is auctioning off oil leases at two sites: 1 and 2. At each site, 100 000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes, and Alexis Pickens are bidding for the oil. Government rules state that no bidder can receive more than 40% of the land being auctioned. Cliff has bid $1,000/acre for site 1 land and $2,000/acre for site 2 land. Blake has bid
$900/acre for site 1 land and $2,200/acre for site2 land. Alexis has bid $1,100/acre for site 1 land and$1,900/acre for site 2 land.
a. Formulate a balanced transportation model to maximize the government’s revenue.
b. Use the minimum-cost method to find the basic feasible solution for this problem.
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