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Michael would like to drink 3 pints of home-brewed craft beer today and an additional 4 pints tomorrow. There are two neighbors on his block who brew beer. Louise is able to sell up to 5 pints of her beer. She's charging $3.00 a pint today and will charge $2.70 a pint tomorrow. Serge is able to sell up to 4 pints of his beer, at $2.90 a pint today, and at $2.80 a pint tomorrow.
Transportation models are quite flexible. The "origins" and "destinations" don't necessarily need to be physical plants or warehouses. In this problem, there is a time component that can be modeled as different destinations - consider the beer that Michael receives today as one destination and the beer he receives tomorrow as the second destination.
a. Draw a network diagram representing the problem.
b. Formulate a linear optimization model that can be used to help Michael decide how much beer to purchase from each neighbor and when. (You do not need to set your model up in Excel and you do not need to solve it.)
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