REQUIRED: d. Formulate and solve a spreadsheet model for this problem. 6. The Texago Corporation has four oil fields, four refineries, and four distribution centers. A major strike involving the transportation industries now has sharply curtailed Texago's capacity to ship oil from the oil fields to the 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. Oil Field Texas California Alaska Middle East Refinery New Orleans Charleston Seattle St. Louis New Orleans 11 5 7 8 Pittsburgh 5 8 4 12 Charleston 7 4 3 9 Refinery Atlanta 9 7 6 11 Seattle 2 8 12 4 Distribution Center Kansas City 6 9 7 9 St. Louis 8 6 15 San Francisco 4 5 8 7 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.

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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REQUIRED:
d. Formulate and solve a spreadsheet model for this problem.
6. The Texago Corporation has four oil fields, four refineries, and four distribution centers. A major
strike involving the transportation industries now has sharply curtailed Texago's capacity to ship
oil from the oil fields to the 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.
Oil Field
Texas
California
Alaska
Middle East
Refinery
New Orleans
Charleston
Seattle
St. Louis
New Orleans
11
5
7
8
Pittsburgh
5
8
4
12
Charleston
7
4
3
9
Refinery
Atlanta
9
7
6
11
Seattle
2
8
12
4
Distribution Center
Kansas City
6
9
7
9
St. Louis
8
7
6
15
San Francisco
4
5
8
7
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.
Transcribed Image Text:REQUIRED: d. Formulate and solve a spreadsheet model for this problem. 6. The Texago Corporation has four oil fields, four refineries, and four distribution centers. A major strike involving the transportation industries now has sharply curtailed Texago's capacity to ship oil from the oil fields to the 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. Oil Field Texas California Alaska Middle East Refinery New Orleans Charleston Seattle St. Louis New Orleans 11 5 7 8 Pittsburgh 5 8 4 12 Charleston 7 4 3 9 Refinery Atlanta 9 7 6 11 Seattle 2 8 12 4 Distribution Center Kansas City 6 9 7 9 St. Louis 8 7 6 15 San Francisco 4 5 8 7 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.
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