rk Problems(10)The U.S. government is auctioning off oil leases at two sites: 1 and 2. At each site, 100 000 acres of land are to be auctioned. Cliff Ewing, BlakeBarnes, and Alexis Pickens are bidding for the oil. Governmentrules state that no bidder can receive more than 40% of the land being auctioned. Cliff has bid $1,000/acre for site 1 land and $2,000/acre for site 2 land. Blak

Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter8: Network Models
Section8.5: Minimum-cost Network Flow Problems
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Part 4-Network Problems(10)The U.S. government is auctioning off oil leases at two sites: 1 and 2. At each site, 100 000 acres of land are to be auctioned. Cliff Ewing, BlakeBarnes, and Alexis Pickens are bidding for the oil. Governmentrules state that no bidder can receive more than 40% of the land being auctioned. Cliff has bid $1,000/acre for site 1 land and $2,000/acre for site 2 land. Blake has bid $900/acre for site 1 land and $2,200/acre for site2 land. Alexis has bid $1,100/acrefor site 1 land and$1,900/acre for site 2 land.

Formulate a balanced transportation model to maximize the government’s revenue.

b.Use the minimum-cost method to find the basic feasible solution for this problem."

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