TCO 3)Scenario

Sinclair Plastics operates two chemical plants that produce polyethylene: the Ohio Valley plant, which can produce up to 10,000 tons per month, and the Lakeview plant, which can produce up to 7,000 tons per month. Sinclair sells its polyethylene to three different auto manufacturing plants: Grand Rapids (demand = 3,000 tons per month), Blue Ridge (demand = 5,000 tons per month), and Sunset (demand = 4,000 tons per month). The cost of shipping between the respective plants is shown in the table below.

	Grand Rapids	Blue Ridge	Sunset
Ohio Valley	50	40	100
Lakeview	60	50	75

Refer to the scenario. Formulate (write out algebraically) an LP transportation model to help Sinclair minimize its shipping costs.(Points : 8)

Refer to the scenario. Implement the LP model in Solver and obtain the optimal shipping plan. What is the optimized cost?

Refer to the scenario. Suppose the Lakeview plant was required to run at capacity. How much more would the shipping plan cost Sinclair?

(Points : 8)

Refer to the scenario. Suppose the shipping capacity between any two plants was limited to 2,500 tons per month. Implement a minimum cost flow network model in Solver and obtain the optimal shipping plan. How much more would the shipping plan cost Sinclair in that case?