The estimated shipping cost per barrel between each of the three waste disposal sites is shown in the following table: Waste Disposal Site Whitewater Los Canos Duras Whitewater — $12
$10 Los Canos 12 — 15 Duras 10 15 — In addition to shipping directly from each of the six plants to one of the three waste disposal sites, Rachel is also considering using each of the plants and waste disposal sites as intermediate shipping points. Trucks would be able to drop a load at a plant or disposal site to be picked up and carried on to the final destination by another truck, and vice versa. Stateline would not incur any handling costs since Polychem has agreed to take care of all local handling of the waste materials at the plants and the waste disposal sites. In other words, the only cost Stateline incurs is the actual transportation cost. So Rachel wants to be able to consider the possibility that it may be cheaper to drop and pick up loads at intermediate points rather than shipping them directly. The following table shows how much Rachel estimates the shipping costs per barrel between each of the six plants to be. Plants Kingsport Danville Macon Selma Columbus Allentown Kingsport
— $6 $1 $9 $7 $8 Danville 6 — 11 10 12 7 Macon 5 11 - 3 7 15 Selma 9 10 3 —
3 16 Columbus 7 12 7 3 — 14 Allentown 8 7 15 16 14 — Rachel wants to determine the shipping routes that will minimize Stateline's total cost in order to develop a contract proposal to submit to Polychem for waste disposal. She particularly wants to know if it is cheaper to ship directly from the plants to the waste sites or if she should drop and pick up some loads at the various plants and waste sites. Develop a model to assist Rachel and solve the model to determine the optimal routes. CASE PROBLEM S11.2 Global Supply Chain Management at Cantrex Apparel International Cantrex Apparel International manufactures clothing items around the world. It has currently contracted with a U.S. retail clothing wholesale distributor for men's goatskin and lambskin leather jackets for the next Christmas season. The distributor has distribution centers in Ohio,
Tennessee, and New York. The distributor supplies the leather jackets to a discount retail chain, a chain of mall boutique stores, and a department store chain. The jackets arrive at the distribution centers unfinished, and at the centers the distributor adds a unique lining and label specific to each of its customers. The distributor has contracted with Cantrex to deliver the following number of leather jackets to its distribution centers in late fall: Distribution Center Goatskin Jackets Lambskin Jackets Ohio 1000 780 Tennessee 1400 950 New York 1600 1150 Cantrex has tanning factories and clothing manufacturing plants to produce leather jackets in Spain, France, Italy, Venezuela, and Brazil.
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