Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as
ID: 2554254 • Letter: S
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 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.
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.
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.)
Combined Costs Per 1,000 lbs.
Solution (× 1,000 lbs.)
Total Costs
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.
Explanation / Answer
Combined Cost per 1000lbs From/To NYC Birmingham Terre Haute Dallas Spokane San Diego MaximumCapacity(*1000lbs) Philadelphia 368 375 379 385 394 407 810 Ranking 4 4 4 4 4 4 Atlanta 328 315 331 332 346 354 920 Ranking 2 1 2 2 2 2 St. Louis 360 363 353 357 361 372 1210 Ranking 3 3 3 3 3 3 Salt Lake City 320 319 315 305 299 307 1010 Ranking 1 2 1 1 1 1 Demands 526 415 926 601 334 401 Quantity Received *1000lbs From/To NYC Birmingham Terre Haute Dallas Spokane San Diego MaximumCapacity(*1000lbs) Philadelphia 126 810 Atlanta 415 442 920 St. Louis 601 334 275 1210 Salt Lake City 526 484 1010 Demands 526 415 926 601 334 401 Total Cost per 1000lbs From/To NYC Birmingham Terre Haute Dallas Spokane San Diego Philadelphia 126*407=51282 Atlanta 415*315=130725 442*331=146302 St. Louis 601*357=214557 334*361=120574 275*372=102300 Salt Lake City 526*320=168320 484*315=152460 Total Cost 168320 130725 298762 214557 120574 153582
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