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Stateline Shipping And Transport Company Essay

716 words - 3 pages

Rachel Sundusky is a 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 wants 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 the leak. In addition, a number of towns and communities in the region where the plants are located prohibit hazardous materials from being shipped through the municipal limits. Thus, not ...view middle of the document...

Stateline would not incur any handling costs because Polychem has agreed to take care of all local handling of the wastes materials at the plants and the waste disposal sites. In others 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...

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