# Rework the previous problem under the assumption that Galveston has a refinery capacity of 150,000..

Rework the previous problem under the assumption that
Galveston has a refinery capacity of 150,000 barrels per day and Mobile has a
refinery capacity of 180,000 barrels per day.

Oilco has oil fields in San Diego and Los Angeles. The San
Diego field can produce up to 500,000 barrels per day, and the Los Angeles
field can produce up to 400,000 barrels per day. Oil is sent from the fields to
a refinery, either in Dallas or in Houston. (Assume that each refinery has
unlimited capacity.) To refine 1000 barrels costs \$5700 at Dallas and \$6000 at
Houston. Refined oil is shipped to customers in
»

Rework the previous problem under the assumption that
Galveston has a refinery capacity of 150,000 barrels per day and Mobile has a
refinery capacity of 180,000 barrels per day.

Oilco has oil fields in San Diego and Los Angeles. The San
Diego field can produce up to 500,000 barrels per day, and the Los Angeles
field can produce up to 400,000 barrels per day. Oil is sent from the fields to
a refinery, either in Dallas or in Houston. (Assume that each refinery has
unlimited capacity.) To refine 1000 barrels costs \$5700 at Dallas and \$6000 at
Houston. Refined oil is shipped to customers in Chicago and New York. Chicago
customers require 400,000 barrels per day, and New York customers require
300,000 barrels per day. The costs of shipping 100,000 barrels of oil (refined
or unrefined) between cities are shown in the file P05_74.xlsx.

a. Determine how to minimize the total cost of meeting all
demands.

b. If each refinery had a capacity of 380,000 barrels per
day, how would you modify the model in part a?

»