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

question 30

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.Suppose the shipping capacity between any two plants was limited to 2500 tons per month.Design and implement a network flow version of this model in Solver and obtain the optimal shipping plan.How much more would the shipping plan cost Sinclair in that case

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