Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material...
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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
7.2
$331.00
Atlanta
9.2
$281.00
St. Louis
12.2
$311.00
Salt Lake City
10.2
$256.00
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.
FROM OR TO
TRANSPORT COSTS PER 1,000 POUNDS
NYC
BIRMINGHAM
TERRE HAUTE
DALLAS
SPOKANE
SAN DIEGO
Philadelphia
$49
$56
$60
$66
$67
$90
Atlanta
59
46
62
63
69
87
St. Louis
61
64
54
58
54
75
Salt Lake City
76
75
71
61
47
65
Total Demand ( 1,000 pounds)
531
420
931
606
331
406
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.
\begin{tabular}{|l|l|l|l|l|l|l|} \hline \multicolumn{7}{|c|}{ Combined Costs Per 1,000 pounds } \\ \hline From/To & NYC & Birmingham & Terre Haute & Dallas & Spokane & San Diego \\ \hline Philadelphia & & & & & & \\ \hline Atlanta & & & & & & \\ \hline St. Louis & & & & & & \\ \hline Salt Lake City & & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|l|} \hline \multicolumn{7}{|c|}{ Total Costs } \\ \hline From/To & NYC & Birmingham & Terre Haute & Dallas & Spokane & San Diego \\ \hline Philadelphia & & & & & & \\ \hline Atlanta & & & & & & \\ \hline St. Louis & & & & & & \\ \hline Salt Lake City & & & & & & $ \\ \hline Total Costs & & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|l|} \hline \multicolumn{7}{|c|}{ Combined Costs Per 1,000 pounds } \\ \hline From/To & NYC & Birmingham & Terre Haute & Dallas & Spokane & San Diego \\ \hline Philadelphia & & & & & & \\ \hline Atlanta & & & & & & \\ \hline St. Louis & & & & & & \\ \hline Salt Lake City & & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|l|l|l|} \hline \multicolumn{7}{|c|}{ Total Costs } \\ \hline From/To & NYC & Birmingham & Terre Haute & Dallas & Spokane & San Diego \\ \hline Philadelphia & & & & & & \\ \hline Atlanta & & & & & & \\ \hline St. Louis & & & & & & \\ \hline Salt Lake City & & & & & & $ \\ \hline Total Costs & & & & & & \\ \hline \end{tabular}
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