a. Create a solver model and find the optimal solution to help SP develop a distribution plan that will minimize costs to supply thecustomers' demand. (Enter your answers in terms of cost per 1,000 lbs and shipment quantities per 1,000 lbs. Round your answersto the nearest whole number.)From/ToPhiladelphiaAtlantaSt. LouisSalt Lake CityFrom/ToPhiladelphiaAtlantaSt. LouisSalt Lake CityReceivedNYCNYC529CombinedCosts Per 1,000 lbs.Birmingham Terre HauteSolution (* 1,000 lbs.)Birmingham Terre Haute418929DallasDallas604SpokaneSpokane329San DiegoSan Diego404 Problem 15-9 (Algo)Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goodsaround 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.PLANTPhiladelphiaAtlantaSt. LouisSalt Lake CityFROM/TOSP currently has six contract customers located in New York City; Birmingham, AL; Terre Haute, IN; Dallas, TX; Spokane, WA; and SanDiego, CA. Transportation costs between the plants and various customers, as well as contracted demand from each customer, areshown in the table below.PhiladelphiaTRANSPORT COSTS PER 1,000 LBS.BIRMINGHAM TERRE HAUTE DALLAS$54$584460KITTITI62527369929AtlantaSt. LouisSalt Lake CityMAXIMUM CAPACITY(x 100,000 LBS.)8.49.312.210.2Total Demand(x 1,000 lbs.)NYC$47575974PROD. COST(PER 1,000 LBS.)$329.00$279.00529$309.00$254.00418$64615659604SPOKANE SAN DIEGO$69715649329$88857363404

combined cost table (Production cost+ transportation cost):Formulas below:

Answered: a. Create a solver model and find the…

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter14: Marketing Channels And Supply Chain Management

Section14.1: Taza Cultivates Channel Relationships With Chocolate

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