Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 (\times 100,000 POUNDS) PRODUCT COST (PER 1,000 POUNDS)
Philadelphia 7.2 $331.00
Atlanta 9.2 $281.00
St. Louis 12.2 $311.00
Salt Lake City 10.2 $256.00
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 $49 $56 $60 $66 $67 $90
Atlanta 594662636987
St. Louis 616454585475
Salt Lake City 767571614765
Total Demand (\times 1,000 pounds)531420931606331406
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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations Management In The Supply Chain Decisions And Cases

Authors: Roger Schroeder, Susan Goldstein

8th Edition

1260368106, 9781260368109

More Books

Students also viewed these General Management questions