Create a solver model and find the optimal solution

Assignment Help Operation Management

Reference no: EM13821840

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 operate 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 Production Costs

PLANT (x 100,000 lbs.) (per 1,000 lbs)

Philadelphia 7.5 $325.00

Atlanta 9.0 $275.00

St. Louis 12.0 $305.00

Salt Lake City 10.3 $250.00

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:

Transportation Costs per 1,000 lbs_______

From/To NYC Birmingham Terre Haute Dallas Spokane San Diego

Philadelphia $45 $52 $56 $62 $78 $85

Atlanta $55 $42 $58 $59 $80 $82

St. Louis $57 $60 $50 $54 $65 $70

Salt Lake City $72 $71 $67 $57 $52 $60

Total Demand 525 415 925 600 325 400

Create a solver model and find the optimal solution to help SP develop a distribution plan that will minimize the costs to supply the customer’s demand

Comment briefly on your solution. Beyond the obvious, does your proposed solution have any other implications for SP?

Reference no: EM13821840

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