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7. Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goods around the United States.

7. Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goods around the United States. SP currently operates four manufacturing centers in Philadelphia, PA; Atlanta, GA; St. Louis, MO; and Salt Lake City, UT. The plants have different capacities and production costs as indicated in the table below.

PLANT MAXIMUM CAPACITY ( 100,000 POUNDS.) PRODUCT COST (PER 1,000 POUNDS)
Philadelphia 7.5 $325.00
Atlanta 9.0 $275.00
St. Louis 12.0 $305.00
Salt Lake City 10.3 $250.00

SP currently has six contract customers located in New York City; Birmingham, AL; Terre Haute, IN; Dallas, TX; Spokane, WA; and San Diego, CA. Transportation costs between the plants and various customers, as well as contracted demand from each customer, are shown in the table below.

FROM OR TO TRANSPORT COSTS PER 1,000 POUNDS
NYC BIRMINGHAM TERRE HAUTE DALLAS SPOKANE SAN DIEGO
Philadelphia $45 $52 $56 $62 $78 $85
Atlanta 55 42 58 59 80 82
St. Louis 57 60 50 54 65 70
Salt Lake City 72 71 67 57 52 60
Total Demand ( 1,000 pounds) 525 415 925 600 325 400

Create a solver model and find the optimal solution to help SP develop a distribution plan that will minimize costs to supply the customers demand.

Note: Enter your answers in terms of cost per 1,000 lbs and shipment quantities per 1,000 lbs. Round your answers to the nearest whole number. Leave the cells blank, whenever zero (0) is required.

Combined Costs Per 1,000 pounds From/To NYC Birmingham Terre Haute Dallas Spokane San Diego Philadelphia Atlanta St. Louis Salt Lake City

Solution ( 1,000 pounds) From/To NYC Birmingham Terre Haute Dallas Spokane San Diego Philadelphia Atlanta St. Louis Salt Lake City Received

Total Costs From/To NYC Birmingham Terre Haute Dallas Spokane San Diego Philadelphia Atlanta St. Louis Salt Lake City Total cost

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