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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 Philadelphia Atlanta St. Louis Salt Lake City Atlanta MAXIMUM CAPACITY (* 100,000 LBS.) 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. FROM/TO NYC TERRE HAUTE SPOKANE SAN DIEGO #1 III II Philadelphia 67 $ 49 60 59 62 69 St. Louis 61 54 54 75 71 47 65 Salt Lake City Total Demand (x 1,000 lbs.) 931 406 From/To Philadelphia Atlanta St. Louis Salt Lake City 76 7.2 9.2 12.2 10.2 531 NYC BIRMINGHAM 56 46 64 PROD. COST (PER 1,000 LBS.) $331.00 $281.00 $311.00 $256.00 75 420 Combined Costs Per 1,000 lbs. Terre Haute Birmingham DALLAS 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. Leave the cells blank, whenever zero (0) is required.) Dallas $ 66 63 58 61 606 Spokane San Diego 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 Philadelphia Atlanta St. Louis Salt Lake City Atlanta MAXIMUM CAPACITY (* 100,000 LBS.) 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. FROM/TO NYC TERRE HAUTE SPOKANE SAN DIEGO #1 III II Philadelphia 67 $ 49 60 59 62 69 St. Louis 61 54 54 75 71 47 65 Salt Lake City Total Demand (x 1,000 lbs.) 931 406 From/To Philadelphia Atlanta St. Louis Salt Lake City 76 7.2 9.2 12.2 10.2 531 NYC BIRMINGHAM 56 46 64 PROD. COST (PER 1,000 LBS.) $331.00 $281.00 $311.00 $256.00 75 420 Combined Costs Per 1,000 lbs. Terre Haute Birmingham DALLAS 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. Leave the cells blank, whenever zero (0) is required.) Dallas $ 66 63 58 61 606 Spokane San Diego
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Related Book For
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase
Posted Date:
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