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 7.9 $328.00
Atlanta 9.1 $278.00
St. Louis 12.1 $308.00
Salt Lake City 10.4 $253.00
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 $46 $53 $57 $63 $74 $83
Atlanta 564359607680
St. Louis 586151556168
Salt Lake City 737268585458
Total Demand (\times 1,000 pounds)523413923598350398
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_2

Step: 3

blur-text-image_3

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

Human Resource Management Employees And Employers In Action

Authors: Cynthia Fontelle, Louis Bevoc

1st Edition

1688510249, 978-1688510241

More Books

Students also viewed these General Management questions

Question

Define Administration and Management

Answered: 1 week ago

Question

Define organisational structure

Answered: 1 week ago

Question

Will it ever be executed?

Answered: 1 week ago

Question

Does it make clear how measurements are defined?

Answered: 1 week ago

Question

How will your strategy receive approval?

Answered: 1 week ago