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 following table:

Plant Maximum Capacity (×

100,000 lbs.)

Prod. Costs (per 1,000 lbs.)

Philadelphia 7.5 $325.00 Atlanta 9.0 $275.00 St. Louis 12.0 $305.00 Salt Lake City 10.3 $250.00 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 following table. (Answers in Appendix E)

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.

b. Comment briefly on your solution. Beyond the obvious, does your proposed solution have any other implications for SP?LO15-2