Sycamore Plastics (SP) is a manufacturer of polyethylene plasticpellets used as a raw material by manufacturers of plastic goodsaround the U.S. SP currently operates four manufacturing centers inPhiladelphia, PA; Atlanta, GA; St. Louis, MO; and Salt Lake City,UT. The plants have different capacities and production costs asindicated in the table below.
PLANT | MAXIMUMCAPACITY (× 100,000 LBS.) | PROD.COST (PER 1,000 LBS.) |
Philadelphia | 7.4 | $334.00 |
Atlanta | 9.1 | $284.00 |
St. Louis | 12.0 | $314.00 |
Salt LakeCity | 10.4 | $259.00 |
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SP currently has six contractcustomers located in New York City; Birmingham, AL; Terre Haute,IN; Dallas, TX; Spokane, WA; and San Diego, CA. Transportationcosts between the plants and various customers, as well ascontracted demand from each customer, are shown in the tablebelow.
| TRANSPORT COSTS PER 1,000 LBS. |
FROM/TO | NYC | BIRMINGHAM | TERREHAUTE | DALLAS | SPOKANE | SAN DIEGO |
Philadelphia | $40 | $47 | $51 | $57 | $60 | $97 |
Atlanta | 50 | 37 | 53 | 54 | 62 | 94 |
St. Louis | 52 | 55 | 45 | 49 | 47 | 82 |
Salt LakeCity | 67 | 66 | 62 | 52 | 40 | 72 |
TotalDemand (× 1,000 lbs.) | 538 | 427 | 938 | 602 | 305 | 413 |
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a. Create a solver model and find the optimalsolution to help SP develop a distribution plan that will minimizecosts to supply the customers’ demand. (Enter your answersin terms of cost per 1,000 lbs and shipment quantities per 1,000lbs. Round your answers to the nearest whole number.)
| CombinedCosts Per 1,000 lbs. |
From/To | NYC | Birmingham | TerreHaute | Dallas | Spokane | San Diego |
Philadelphia | $ | $ | $ | $ | $ | $ |
Atlanta | | | | | | |
St. Louis | | | | | | |
Salt LakeCity | | | | | | |
|
| Solution (× 1,000 lbs.) |
From/To | NYC | Birmingham | TerreHaute | Dallas | Spokane | San Diego |
Philadelphia | | | | | | |
Atlanta | | | | | | |
St. Louis | | | | | | |
Salt LakeCity | | | | | | |
Received | | | | | | |
|
| Total Costs |
From/To | NYC | Birmingham | TerreHaute | Dallas | Spokane | San Diego |
Philadelphia | $ | $ | $ | $ | $ | $ |
Atlanta | | | | | | |
St. Louis | | | | | | |
Salt LakeCity | | | | | | |
Total cost | | | | | | $ |