Question

Ques 4:

There are three oil refineries (1, 2 and 3) having a respective capacity to process 54, 143 and

313 metric tonnes of crude oil every month and there are three oil wells (A, B and C) having

a forecasted production of 155, 122, 233 metric tonnes of crude oil every month for a year.

The cost of shipping (£/barrel) of crude oil from a specific well to refinery is provided in the

following table. A barrel can hold 7 metric tonnes of crude oil.

Oil well A

Oil well B

Oil well C

Refinery 1

12

13

16

Refinery 2

11

11

17

Refinery 3

19

18

12

Determine the routes to ship crude oil from the oil wells to the refineries that incurs the least

cost this year.

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