Distributed oil deposits are often tapped by drilling from a central site. BlackGold Corp. is considering two potential drilling sites for reaching four targets (possible deposits). The following table provides the preparation costs (in millions of dollars) at each of the two sites and the cost of drilling from each site to each deposit. Formulate the problem of choosing which sites to open and which sites should tap each deposit as an integer program. Find the optimal solu- cion. Drilling cost to target Site | 1 2 3 4 Preparation cost 1 2 1 8. 5 2 4 6 3 1 6

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Distributed oil deposits are often tapped by drilling from
a central site. BlackGold Corp. is considering two potential drilling
sites for reaching four targets (possible deposits). The following table
provides the preparation costs (in millions of dollars) at each of the two
sites and the cost of drilling from each site to each deposit.
Formulate the problem of choosing which sites to open and which sites
should tap each deposit as an integer program. Find the optimal solu-
tion.
Drilling cost
to target
Site 1
2 1 8
4 6 3
2
3
4
Preparation cost
1
5
5
1
6
Transcribed Image Text:Distributed oil deposits are often tapped by drilling from a central site. BlackGold Corp. is considering two potential drilling sites for reaching four targets (possible deposits). The following table provides the preparation costs (in millions of dollars) at each of the two sites and the cost of drilling from each site to each deposit. Formulate the problem of choosing which sites to open and which sites should tap each deposit as an integer program. Find the optimal solu- tion. Drilling cost to target Site 1 2 1 8 4 6 3 2 3 4 Preparation cost 1 5 5 1 6
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