10-8 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 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. Do (a) through (d) as in Exercise 10-7.

(a) Formulate a linear program to determine an optimal shipping plan.
(b) Use class optimization software to compute an optimal solution to your LP.
(c) Show that your LP can be represented as a minimum cost flow model (with total supply = total demand) by sketching the corresponding digraph and labeling as in Exercise 10-1.
(d) Classify nodes in your digraph as source, sink, or transshipment.

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