Question: Sycamore Plastics SP is a manufacturer of polyethylene plastic pellets

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.

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 forSP?

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  • CreatedApril 09, 2014
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