In the optimal solution to the Green Grass shipping model, the Miami customer’s order is not satisfied. Suppose that Green Grass decides, as a matter of policy, to satisfy each customer’s order (at the customer’s bid price). How much profit will the company lose from this policy decision?
Rework the previous problem under the assumption that Galveston has a refinery capacity of 150,000 barrels per day and Mobile has a refinery capacity of 180,000 barrels per day.
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