Question
Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goods around the U.S. SP currently
Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goods around the U.S. 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 LBS.) | PROD. COST (PER 1,000 LBS.) |
Philadelphia | 7.4 | $333.00 |
Atlanta | 9.1 | $283.00 |
St. Louis | 12.3 | $313.00 |
Salt Lake City | 10.3 | $258.00 |
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.
TRANSPORT COSTS PER 1,000 LBS. | ||||||
FROM/TO | NYC | BIRMINGHAM | TERRE HAUTE | DALLAS | SPOKANE | SAN DIEGO |
Philadelphia | $49 | $56 | $60 | $66 | $65 | $92 |
Atlanta | 59 | 46 | 62 | 63 | 67 | 89 |
St. Louis | 61 | 64 | 54 | 58 | 52 | 77 |
Salt Lake City | 76 | 75 | 71 | 61 | 45 | 67 |
Total Demand ( 1,000 lbs.) | 533 | 422 | 933 | 608 | 333 | 408 |
a. 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. (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.)
CombinedCosts Per 1,000 lbs. | ||||||
From/To | NYC | Birmingham | Terre Haute | Dallas | Spokane | San Diego |
Philadelphia | $ | $ | $ | $ | $ | $ |
Atlanta | ||||||
St. Louis | ||||||
Salt Lake City | ||||||
Solution ( 1,000 lbs.) | ||||||
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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