The Stateline Shipping and Transport Company is negotiating a shipping contract with Polychem. Polychem would like Stateline to pick up and transport their waste products from their six plants to three waste disposal sites. There is a possibility that using the plants and waste disposal sites as intermediate shipping points could lower the overall shipping costs. A Stateline manager is trying to determine the shipping routes that will minimize Stateline’s total cost and if it would be cheaper to ship directly from the plants to the waste sites or use intermediate shipping points (Taylor, 2011, p. 273-274). The estimated shipping costs ($/barrel) from the six plants to the three waste disposal sites are shown in Table 1.
Waste Disposal Site
Table 1: Estimated Shipping Costs from Plant to Waste Disposal Site
The waste generated by the plants represents the supply for the transportation model and is shown in Table 2. The model’s demand is the number of barrels each waste disposal site can accommodate in one week. This data is shown in Table 3.
PlantWaste per Week (barrels)
Waste Disposal SiteWeekly Accommodation (barrels)
Table 2: Generated Waste (Supply)Table 3: Barrel Accommodation (Demand)
The estimated shipping cost ($/barrel) between each plant is shown in Table 4 and between each waste disposal site is shown in Table 5.
Plant1.Kingsport2.Danville3.Macon4.Selma5.Columbus6.Allentown 1.Kingsport$ -$ 6$ 4$ 9$ 7$ 8