Question: / Problem 15.9 (Algo) 25 Ints Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic

 / Problem 15.9 (Algo) 25 Ints Sycamore Plastics (SP) is a

/ Problem 15.9 (Algo) 25 Ints 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. MAXIMUM CAPACITY (* 100,000 LBS.) eBook PLANT Philadelphia Atlanta St. Louis Salt Lake City 9.1 12. 10.4 PROD. COST (PER 1,800 LBS.) $334.ee $284.ee $314.ee $259.ee Hint 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 varlous customers, as well as contracted demand from each customer, are shown in the table below. Print References SAN DIEGO $97 FROM/TO Philadelphia Atlanta St. Louis Salt Lake City Total Demand (* 1,000 lbs.) NYC $40 se 52 67 538 BIRMINGHAM $47 37 55 66 TRANSPORT COSTS PER 1,29 LBS. TERRE HAUTE DALLAS SPOKANE $51 $57 $60 53 54 62 45 49 47 62 52 40 938 602 385 82 72 427 413 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. (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.) NYC Combined Costs Per 1,000 lbs. Birmingham Terre Haute Dallas Spokane San Diego From/To Philadelphia Atlanta St. Louis Salt Lake City Solution (* 1,000 lbs.) Birmingham Terre Haute NYC Dallas Spokane San Diego From/To Philadelphia Atlanta St. Louis Salt Lake City Received 538 427 938 602 305 413 Total Costs Terre Haute NYC Birmingham Dallas Spokane San Diego From/To Philadelphia Atlanta St. Louis Salt Lake City Total cost S 1,085,651

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!