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Airasia can buy its jet fuel from any one of the three vendors V1,V2 and...

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Accounting

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Airasia can buy its jet fuel from any one of the three vendors V1,V2 and V3. The airline's needs for the upcoming month at each of the three Sarawak airports it serves are 100000 gallons at Limbang Airport, 180000 gallons at Miri Airport, and 350000 gallons at Kuching Airport. Each vendor can supply fuel to each airport at a price (in cents per gallon) given by the following schedule: Each vendor, however, is limited in the total number of gallons it can provide during any one month. These capacities are 320000 gallons for V1,270000 gallons for V2, and 190000 gallons for V3. Determine a purchasing policy that will supply the airline's requirements at each airport at minimum total cost. [25]

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