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Stateline Shipping

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Stateline Shipping and Transport Company

Carla Coleman

Strayer University

MAT 540: Quantitative Method

Dr. Luke Howard

March 20, 2014 2014

Case Study: Stateline Shipping and Transport Company

In this case study, we are introduced to Rachel Sundusky, the manager of the South-Atlantic office of the Stateline Shipping and Transport Company. The information we are given is that Rachel is in the process of negotiating a new contract to haul hazardous chemical waste from six (6) locations to three (3) waste disposal sites for Polychem, a manufacturer or chemicals for industry use. Rachel has estimated both the cost to transport one barrel from each location to each disposal site, as well as between each location. In estimating these costs, Rachel took into account that some towns and municipalities where the six plants are located restrict the transportation of hazardous material within municipal limits, so costs in some cases had to include traversing circutous routes.

Rachel is given the number of barrels of waste each of the six plant locations will need picked up and how many barrels each of the waste disposal sights can accept. Given this information, and the esimated shipping costs she has developed, Rachel would like to determine which shipping routes will minimize Stateline’s total cost. She would like to consider the cost to move the waste directly from each plant location to a waste sight, as well a whether there is any cost savings if Stateline drops off and picks up some loads at the various plants and waste sites. One she has made these determinations, she will be in a better position to prepare a contract and negotiate the deal with Polychem.

Transportation Model

We are given the amount of waste, in barrels, to be hauled from each six (6) plant

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