Problem definition

4 Trucks are available to deliver gas to 5 gas stations. Each truck has a different capacity and if the company decides to use it to supply to any gas stations, the cost can be modeled by a constant operating cost. The capacity and daily operating costs of each truck are shown in the table below.

Capacity (Liters)

Daily Operating Costs

Truck 1

4000

45

Truck 2

5000

50

Truck 3

6000

55

Truck 4

11000

60

Each gas station can be supplied only by one truck, but a track may deliver to more than one gas station. The daily demands of each gas station are shown in the table below.

Daily Demand (liters)

Station 1

1000

Station 2

2000

Station 3

3000

Station 4

5000

Station 5

8000

Formulate an Integer Program Problem that can be used to minimise the distribution costs of the logistics operations needed to satisfy the demand of the five stations.

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