Exhibit 5-1
Sinclair Plastics Operates Two Chemical Plants Which Produce

question 23

Essay

Exhibit 5-1
Sinclair Plastics operates two chemical plants which produce polyethylene; the Ohio Valley plant which can produce up to 10,000 tons per month and the Lakeview plant which can produce up to 7,000 tons per month. Sinclair sells its polyethylene to three different auto manufacturing 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:
$$\begin{array} { | l | l | l | l | } \hline & \text { Grand Rapids } & \text { Blue Ridge } & \text { Sunset } \\\hline \text { Ohio Valley } & 50 & 40 & 100 \\\hline \text { Lakeview } & 60 & 50 & 75 \\\hline\end{array}$$
-Refer to Exhibit 5-1.Formulate (write out algebraically)an LP transportation model to help Sinclair minimize its shipping costs.

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