Operational Management Questions

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HOMEWORK ASSIGNMENT 4

Chapter 15 – Problem 9

Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goods around the U.S. SP currently operate four manufacturing centers in Philadelphia, PA; Atlanta, GA; St. Louis, MO; and Salt Lake City, UT. The plants have different capacities and production costs as indicated in the table below:

Maximum Capacity               Production Costs

PLANT                                                 (x 100,000 lbs.)                    (per 1,000 lbs)

Philadelphia                                                 7.5                                      $325.00

Atlanta                                                          9.0                                      $275.00

St. Louis                                                      12.0                                      $305.00

Salt Lake City                                             10.3                                      $250.00

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