Stateline

Topics: Transport, Waste, Cargo Pages: 1 (294 words) Published: December 7, 2011
Stateline Shipping
Stateline Shipping and Transport

In the “Stateline Shipping and Transport Company” case there is the manager Rachel Sundusky of the South –Atlantic office of the Stateline Shipping and Transport Company. She is trying to negotiate a new shipping contract with Polychem where Stateline picks up and transport waste product form its six plants to three waste disposal sites. In this problem we are trying to determine the shipping routes the will minimize Stateline total cost. In the first part I set up the problem in excel showing the shipping to the waste directly from the six plants to the three waste disposal site. In the result I had a Z value which is the minimum cost of $3090.00 that Polychem will pay Stateline to transport their products. It also shows that Danville and Columbus is not safe to ship from because they cannot provide the supply that is needed. In the second part I develop a transshipment model in which each of the plants and disposal sites can be used as intermediate points. In the results it shows that I had a Z value which is the minimum cost of 2884.00 that Polychem will pay Stateline to transport their products. Also shows that Danville is not worth using to ship from because they cannot provide the supply that is needed.

The overall results show that it is cheaper for Stateline to use the routes where the plants and disposal sites can be used as intermediate points. In both models it shows that Danville is not a good shipping site. Over all in this case I think that Stateline should not do business with Polychem because of the lack of pay they are willing to consider transporting the hazardous products.
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