Question
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
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 | 8.0 | $321.00 |
Atlanta | 9.2 | $271.00 |
St. Louis | 12.1 | $301.00 |
Salt Lake City | 10.4 | $246.00 |
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 POUNDS | ||||||
---|---|---|---|---|---|---|
FROM/TO | NYC | BIRMINGHAM | TERRE HAUTE | DALLAS | SPOKANE | SAN DIEGO |
Philadelphia | $46 | $53 | $57 | $63 | $73 | $84 |
Atlanta | 56 | 43 | 59 | 60 | 75 | 81 |
St. Louis | 58 | 61 | 51 | 55 | 60 | 69 |
Salt Lake City | 73 | 72 | 68 | 58 | 53 | 59 |
Total Demand ( 1,000 pounds) | 524 | 414 | 924 | 599 | 351 | 399 |
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.
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