Assignment:
The Crazy Crude oil company can produce 1500 barrels per day from one of its fields and 1210 from the other. From there the crude oil can be piped to either of their two tank farms, one at Axel and the other at Bull. Axel then trucks oil on to the Crazy Crude refinery at $0.40 per barrel to help meet its daily demand of 2000 barrels. Bull trucks to the refinery at $0.33 per barrel. It costs Crazy Crude $0.10 per barrel to pipe from field 1 to Axel and $0.35 per barrel to pipe from field 1 to Bull. Corresponding values for field 2 are $0.25 and $0.56. Also, the tank farms can truck between themselves at $0.12 per barrel.
a. Formulate the LP problem to determine an optimal shipping plan (Hint: a visual of the problem may help)
b. Use MS Excel to compute the optimal solution for part a (attach a print-out of your spreadsheet and conditions)
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.