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    Posted By:AccountingExpert

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    Posting Date : 2014/06/12 15:42

    Due Date : 2014/06/26 12:00

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    Stateline Shipping and Transport Company

     

    Rachel Sundusky is the manager of the South-Atlantic office of the Stateline Shipping and Transport Company. She is in the process of negotiating a new shipping contract with Polychem, a company that manufactures chemicals for industrial use. Polychem want Stateline to pick up and transport waste products from its six plants to three waste disposal sites. Rachel is very concerned about this proposed arrangement. The chemical wastes that will be hauled can be hazardous to humans and the environment if they leak. In addition, a number of towns and communities in the region where the plants are located prohibit hazardous materials from being shipped through their municipal limits. Thus, not only will the shipments have to be handled carefully and transported at reduced speeds, they will also have to traverse circuitous routes in many cases. Rachel has estimated the cost of shipping a barrel of waste from each of the six plants to each of the three waste disposal sites as shown in the following table:

     

     

     

     

     

     

                                                                           Waste Disposal Site

     

     

     

    Plant

     

     

     

    Whitewater

     

     

     

    Los Canos

     

     

     

    Duras

     

     

     

    Kingsport

     

     

     

    $12

     

     

     

    $15

     

     

     

    $17

     

     

     

    Danville

     

     

     

    14

     

     

     

    9

     

     

     

    10

     

     

     

    Macon

     

     

     

    13

     

     

     

    20

     

     

     

    11

     

     

     

    Selma

     

     

     

    17

     

     

     

    16

     

     

     

    19

     

     

     

    Columbus

     

     

     

    7

     

     

     

    14

     

     

     

    12

     

     

     

    Allentown

     

     

     

    22

     

     

     

    16

     

     

     

    18

     

     The plants generate the following amounts of waste products each week:

     

     

     

     

     

     

    Plant

     

     

     

    Waste per Week (bbl)

     

     

     

    Kingsport

     

     

     

    35

     

     

     

    Danville

     

     

     

    26

     

     

     

    Macon

     

     

     

    42

     

     

     

    Selma

     

     

     

    53

     

     

     

    Columbus

     

     

     

    29

     

     

     

    Allentown

     

     

     

    38

     

     

     

    The three waste disposal sites at Whitewater, Los Canos, and Duras can accommodate a maximum of 65, 80, and 105 barrels per week respectively. 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 because 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 ship them directly. Rachel estimates the shipping costs per barrel between each of the six plants to be as follows:

     

     

     

     

     

     

     

     

     

     

    Plant

     

     

     

    Plant

     

     

     

    Kingsport

     

     

     

    Danville

     

     

     

    Macon

     

     

     

    Selma

     

     

     

    Columbus

     

     

     

    Allentown

     

     

     

    Kingsport

     

     

     

    $  __

     

     

     

    $6

     

     

     

    $4

     

     

     

    $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

     

     

     

    __

     The estimated shipping cost per barrel between each of the three waste disposal sites is as follows:


     

     

     

     

     

     

     

    Waste Disposal Site

     

     

     

    Waste Disposal Site

     

     

     

    Whitewater

     

     

     

    Los Canos

     

     

     

    Duras

     

     

     

    Whitewater

     

     

     

    $__

     

     

     

    $12

     

     

     

    $10

     

     

     

    Los Canos

     

     

     

    12

     

     

     

    __

     

     

     

    15

     

     

     

    Duras

     

     

     

    10

     

     

     

    15

     

     

     

    __

     

    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 would be 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.

     

     Read the 'Stateline Shipping and Transport Company" Case Problem on pages 273-274 of the text. Analyze this case, as follows:

     

    1.  

    In Excel, or other suitable program, develop a model for shipping the waste directly from the 6 plants to the 3 waste disposal sites.

     

     2.  

    Solve the model you developed in #1 (above) and clearly describe the results. In Excel, or other suitable program, Develop a transshipment model in which each of the plants and disposal sites can be used as intermediate points. 

     

     3.  

    Solve the model you developed in #3 (above) and clearly describe the results.

     

     

    4.  

    Interpret the results and draw conclusions that address the question posed in the case problem. What are the limits of the study? Write at least one paragrap

    Answer
    Submitted by AccountingExpert on 2014/06/12 15:43
    teacher rated 211 times

    Price: $20.00

     

    MAT 540 Assignment 4 Case Problem 100% Quality work A+ Guaranteed Tutorial Already Graded with A+ score




    ---- file 1.docx preview (1254 words)---

    MAT540 xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx plants xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Spreadsheet xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx of xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx of xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx waste xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx disposal xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx 6, xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx +13x3A+20x3B xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx x3A+x3B xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx =29 xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx x1B+x2B+x3B+x4B+x5B xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx ≤ xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx following xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx bbl xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx wastes xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx from xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx to xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Whitewater,28 xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx bbl xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx $2,8223. xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx waste xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx possibility xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx For xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx transport xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx

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