Discuss the below:
Q: Sinclair Plastics operates two chemical plants that 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 = 3,000 tons per month), Blue Ridge (demand = 5,000 tons per month), and Sunset (demand = 4,000 tons per month). The cost of shipping between the respective plants is shown in the table below.
Suppose the shipping capacity between any two plants was limited to 2,500 tons per month. Implement a minimum cost flow network model in Solver and obtain the optimal shipping plan. How much more would the shipping plan cost Sinclair in that case?
|
Grand Rapids
|
Blue Ridge
|
Sunset
|
|
Ohio Valley
|
50
|
40
|
100
|
|
Lakeview
|
60
|
50
|
75
|