Sinclair Plastics Operates Two Chemical Plants Which Produce Polyethylene; the Ohio

question 19

Essay

Sinclair Plastics operates two chemical plants which produce polyethylene; the Ohio Valley plant, which produces 5000 tons per month, and the Lakeview plant, which can produce 7000 tons per month. Sinclair sells its polyethylene to three different GM auto plants: Grand Rapids (demand = 3000 tons per month), Blue Ridge (demand = 5000 tons per month), and Sunset (demand = 4000 tons per month). The costs of shipping between the respective plants is shown in the table below:
-What is the optimal shipping plan? What are the total costs in that case?

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Definitions:

Liberal Arts

Academic subjects such as literature, philosophy, mathematics, and social and physical sciences as distinct from professional and technical subjects.

Economic Self-sufficiency

The condition of being able to produce and maintain the consumption of goods and services without external assistance.

George Washington Carver

An American agricultural scientist and inventor who promoted alternative crops to cotton and methods to prevent soil depletion.

Agricultural Department

Governmental department responsible for the administration and regulation of policies related to agriculture, farming, and food production.