# Project #15181 - Homework #3

From the text, do the following problems:

Chapter 12, #4:  This is a fairly straightforward transportation problem with the added wrinkle that production costs have to be considered too.  You might find it easier to keep shipping and production costs separate until the final addition.

Chapter 12, #9:  This is a financial problem of the type we will cover in class.  There are multiple ways to set it up, but it is probably easiest to follow the format in the text.

Chapter 13, #6:  This problem calls for binary constraints and is the type I call a “big M” problem.  Details will be given in class, although you should be able to get it from the text.

Also do the following network flow problem.  Since this is a Word file, it should be easy to get the data into your spreadsheet!

The Texago Corporation has four oil fields, four refineries, and four distribution centers in the locations identified in the next tables.  A major strike involving the transportation industries now has sharply curtailed Texago’s capacity to ship oil from the four oil fields to the four refineries and to ship petroleum products from the refineries to the distribution centers.  Using units of thousands of barrels of crude oil (and its equivalent in refined products), the following tables show the maximum number of units that can be shipped per day from each oil field to each refinery and from each refinery to each distribution center.

The Texago management now wants to determine a plan for how many units to ship from each oil field to each refinery and from each refinery to each distribution center that will maximize the total number of units reaching the distribution centers.

Formulate and solve a spreadsheet model for this problem.

 Refinery Oil Field New Orleans Charleston Seattle St. Louis Texas 11 7 2 8 California 5 4 8 7 Alaska 7 3 12 6 Middle East 8 9 4 15

 Distribution Center Refinery Pittsburgh Atlanta Kansas City San Francisco New Orleans 5 9 6 4 Charleston 8 7 9 5 Seattle 4 6 7 8 St. Louis 12 11 9 7

 Subject Business Due By (Pacific Time) 10/24/2013 12:00 am
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