Question #2: Transshipment Linear Programming Problem Shell Oil Company, operates oil refineries in Phoenix, Dallas and Atlanta. Refined oil storage facilities are located in Denver and St. Louis. Distributors are located in Boston, Chicago and San Francisco. The plant capacities and distributor demands in Million Barrel per Day (MBD) are as follows: Refinery Phoenix Capacity (MBD) Distributor Boston Demand (MBD) 150 250 200 Dallas Atlanta 200 300 150 Chicago San Francisco The unit transportation costs (in dollars) for shipments from the two plants to the two warehouses and from the two warehouses to the three distributors are as follows: Storage Facility Storage Distributor Refinery Denver St. Louis Facility Boston Chicago San Francisco Phoenix 6 12 Denver 20 14 11 Dallas 10 Atlanta 15 5 8 St. Louis 13 7 18 A. Draw the network representation of the Shell Oil Company transshipment problem. B. Formulate the problem as a linear programming problem.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
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Chapter5: Network Models
Section5.5: Shortest Path Models
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Question #2: Transshipment Linear Programming Problem
Shell Oil Company, operates oil refineries in Phoenix, Dallas and Atlanta. Refined oil storage
facilities are located in Denver and St. Louis. Distributors are located in Boston, Chicago and
San Francisco. The plant capacities and distributor demands in Million Barrel per Day (MBD)
are as follows:
Refinery
Phoenix
Capacity (MBD)
Distributor
Boston
Demand (MBD)
150
250
200
Dallas
Atlanta
200
300
150
Chicago
San Francisco
The unit transportation costs (in dollars) for shipments from the two plants to the two warehouses
and from the two warehouses to the three distributors are as follows:
Storage Facility
Storage
Distributor
Refinery
Denver St. Louis
Facility
Boston
Chicago San Francisco
Phoenix
6
12
Denver
20
14
11
Dallas
10
Atlanta
15
5
8
St. Louis
13
7
18
A. Draw the network representation of the Shell Oil Company transshipment problem.
B. Formulate the problem as a linear programming problem.
Transcribed Image Text:Question #2: Transshipment Linear Programming Problem Shell Oil Company, operates oil refineries in Phoenix, Dallas and Atlanta. Refined oil storage facilities are located in Denver and St. Louis. Distributors are located in Boston, Chicago and San Francisco. The plant capacities and distributor demands in Million Barrel per Day (MBD) are as follows: Refinery Phoenix Capacity (MBD) Distributor Boston Demand (MBD) 150 250 200 Dallas Atlanta 200 300 150 Chicago San Francisco The unit transportation costs (in dollars) for shipments from the two plants to the two warehouses and from the two warehouses to the three distributors are as follows: Storage Facility Storage Distributor Refinery Denver St. Louis Facility Boston Chicago San Francisco Phoenix 6 12 Denver 20 14 11 Dallas 10 Atlanta 15 5 8 St. Louis 13 7 18 A. Draw the network representation of the Shell Oil Company transshipment problem. B. Formulate the problem as a linear programming problem.
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