Question

In: Statistics and Probability

Solve the following transportation problem: A company has refinery plants that produce gasoline with the following...

  1. Solve the following transportation problem: A company has refinery plants that produce gasoline with the following capacities
  • Houston: 27000 gallons per day
  • New Mexico: 35000 gallons per day

The company supplies the following states:

  • California: 32000 gallons per day
  • Louisiana: 12000 gallons per day
  • Mississippi: 15000 gallons per day

Following are the transportation costs per gallon between each refinery and each customer.

Distribution centers

Plants

California

Louisiana

Mississippi

Houston

0.75

0.40

0.65

New Mexico

0.50

0.70

0.80

  1. Build a transportation network
  2. Write down a linear program that optimizes transportation
  3. Solve the in LP solver and explain its solution

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