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 S6 per barrel), and Japan is willing to buy up to 30 million barrels (at $6.50 per barrel). Formulate a balanced transportation problem to maximize Ayatola's profits. TABLE 12 To ($) From ($) England Japan Field 1 1 2 Field 2 1

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 S6 per barrel), and Japan is willing to buy up to 30 million barrels (at $6.50 per barrel). Formulate a balanced transportation problem to maximize Ayatola's profits. TABLE 12 To ($) From ($) England Japan Field 1 1 2 Field 2 1

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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