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Assignment #4: Case Problem "Stateline Shipping and Transport Company"

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 paragraph.
There are two deliverables for this Case Problem, the Excel spreadsheets and an accompanying
written description/explanation. Please submit both of them electronically via the dropbox.
The assignment will be graded using the associated rubric.
Develop solutions for transshipment problems.
Outcome Assessed:
Communicate issues in Management Science
Grading Rubric for Stateline Shipping & Transport Case Problem
There are 12 points in each of the five criteria for a total of 60 points possible

Criteria

1. Develop a
transportation
model for
shipping from
the 6 plants
directly to the 3
disposal sites.
Describe and
implement the
model.
2. Solve the
model given in 1
and describe the
results.

0
Unacceptable
(0 points)
Did not submit
or the objective
function and/or
constraints are
specified with
less than 70%
accuracy.

1
Developing
(6 points)
The objective
function and
constraints are
specified and
described with
70 - 79%
accuracy.

2
Competent
(9 points)
The objective
function and
most or all
constraints are
specified
correctly and
adequately
described.

3
Exemplary
(12 points)
The objective
function and all
constraints are
specified
correctly in the
model and
clearly
described

Did not solve


the model or
adequately
describe the
results.

The model is
solved, but its
validity is
questionable or
it is incorrectly

The model is
solved and the
results are
mostly valid and
mostly correctly

The model is
solved and the
results are valid
and correctly
described.

3. Develop a
transshipment
model in which
each of the
plants and
disposal sites
can be used as
intermediate
points.
4. Solve the
model given in 3
and describe the
results.

Did not submit


or the objective
function and/or
constraints are
specified with
less than 70%
accuracy.

5. Interpret
the models
and draw
conclusions

Did not
complete the
assignment or
interpretation
and/or
conclusions
drawn are
invalid and/or
not intelligibly
communicated.

Did not solve


the model or
adequately
describe the
results.

described.
The objective
function and
constraints are
specified and
described with
70 -79%
accuracy.

described.
The objective
function and
most or all
constraints are
specified
correctly and
adequately
described.

The model is
solved, but its
validity is
questionable or
it is incorrectly
described.
There are errors
in interpreting
the results; or
inappropriate
conclusions are
drawn; or this is
not clearly
communicated.

The model is
solved and the
results are
mostly valid and
mostly correctly
described.
Results are
interpreted in a
mostly correct
manner;
conclusions
drawn are
mostly
appropriate;
and
communicated
in a mostly clear
manner.

The objective
function and all
constraints are
specified
correctly in the
model and
clearly
described
The model is
solved and the
results are valid
and correctly
described.
Results are
correctly
interpreted;
appropriate
conclusions are
drawn and
communicated
clearly.

Plant

Waste no

White Water

Kingsport

35

35

Los Canos

Duras

12 dollars
Danville

26

Macon

42

9 dollars

26
42
(11 dollars)

Selmas

53

Colombus

29

Allentown

38

(16 dollars)

(7$)

53

29

38
(16$)

Total

64

117

42

Max Handling

65

80

105

The above mentioned table presents the least cost that would take to transfer a barrel of waste
material to a specific waste management site. The site for waste disposal plant is chosen
bearing in mind the cost. So the above pointed waste disposal sites are the most appropriate
ones for each plant to dispose their material, for the transportation cost is very cheap.
However, there lies a problem with the amount of waste that each site can handle. The waster
disposal site at White Water has adequate capacity to handle but the plant at Duras is forced to
underperform due to lack of wastes to be handled. On the contrary, the site at Los Canos is
overloaded with capacity that it can not handle. Hence, transfer of additional barrel to another

site becomes mandatory. The transfer must be cost-efficient but at the same time the transfer
must not include extreme transportation, as the goods under transportation are hazardous.
Hence, the following chart would present the feasible alternative route.

Plant

Waste no

White Water

Kingsport

35

35

Los Canos

Duras

12 dollars
Danville
Macon

26

9 dollars

26

42

42 + 53
(11 dollars)

Selmas

53

Colombus

29

Allentown

38

(7$)

29

38
(16$)

Total

64

64

95

Max Handling

65

80

105

As stated in the previous diagram, due to overload it would be impossible for the plant at Los
Canos to handle 117 barrels of waste. Hence, it requires that we transfer it to other site. The
most feasible way is to transfer the waste material from Selmas to Macon. For the
transportation cost per barrel between these sites is just 3$. This is the cheapest of all

transportation costs. From Macon the wastes can be transferred to Duras that has the
maximum capacity. This is the most feasible and cost effective method. For the cheapest cost of
direct transportation of goods from Selmas is 16 $ per barrel and it is to the plant at Los Canos.
But through this method the cost of transportation is merely reduced to 14 $. For
transportation from Selmas to Macon costs just 3$ per barrel and from there to the disposal
site it is 11$ per barrel. Thus, this method is more cost-effective than the direct transportation
of goods.

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