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 0 1 2 3
Unacceptable Developing Competent Exemplary
(0 points) (6 points) (9 points) (12 points)
1. Develop a Did not submit The objective The objective The objective
transportation or the objective function and function and function and all
model for function and/or constraints are most or all constraints are
shipping from constraints are specified and constraints are specified
the 6 plants specified with described with specified correctly in the
directly to the 3 less than 70% 70 - 79% correctly and model and
disposal sites. accuracy. accuracy. adequately clearly
Describe and described. described
implement the
model.
2. Solve the Did not solve The model is The model is The model is
model given in 1 the model or solved, but its solved and the solved and the
and describe the adequately validity is results are results are valid
results. describe the questionable or mostly valid and and correctly
results. it is incorrectly mostly correctly described.
 described. described.
3. Develop a Did not submit The objective The objective The objective
transshipment or the objective function and function and function and all
model in which function and/or constraints are most or all constraints are
each of the constraints are specified and constraints are specified
plants and specified with described with specified correctly in the
disposal sites less than 70% 70 -79% correctly and model and
can be used as accuracy. accuracy. adequately clearly
intermediate described. described
points.
4. Solve the Did not solve The model is The model is The model is
model given in 3 the model or solved, but its solved and the solved and the
and describe the adequately validity is results are results are valid
results. describe the questionable or mostly valid and and correctly
results. it is incorrectly mostly correctly described.
described. described.
5. Interpret Did not There are errors Results are Results are
the models complete the in interpreting interpreted in a correctly
and draw assignment or the results; or mostly correct interpreted;
conclusions interpretation inappropriate manner; appropriate
and/or conclusions are conclusions conclusions are
conclusions drawn; or this is drawn are drawn and
drawn are not clearly mostly communicated
invalid and/or communicated. appropriate; clearly.
not intelligibly and
communicated. communicated
in a mostly clear
manner.
Plant Waste no White Water Los Canos Duras

Kingsport 35 35

12 dollars

Danville 26 9 dollars 26

Macon 42 42

(11 dollars)

Selmas 53 (16 dollars) 53

Colombus 29 (7$) 29

Allentown 38 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 Los Canos Duras

Kingsport 35 35

12 dollars

Danville 26 9 dollars 26

Macon 42 42 + 53

(11 dollars)

Selmas 53

Colombus 29 (7$) 29

Allentown 38 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.