(Answered) : Question 1 Primus Energy Pe Operates Four Refineries Daily Capacities 07 08 05 17 Million Q33452871

Question 1
Primus Energy (PE) operates four refineries with daily capacitiesof 0.7, 0.8, 0.5, and 1.7
million gallons, respectively. The corresponding refining costs are25, 22, 21, and 19 cents per
gallon, respectively. PE supplies five areas with daily demands of0.9, 0.7, 0.5, 1.0, and 0.4
million gallons, respectively. Gasoline is transported to the fivedistribution areas through a
network of pipes. The transportation cost is 15 cents per 1,000gallons per pipeline mile. The
mileage between the refineries and the distribution areas indisplayed in Table 1.
Table 1 – Mileage between the refineries and the distributionareas
Distribution areas
Refineries D1 D2 D3 D4 D5
R1 100 120 180 90 200
R2 160