A Firm Has Established a Distribution Network for the Supply

question 48

Essay

A firm has established a distribution network for the supply of a raw material critical to its manufacturing.Currently there are two origins for this raw material,which must be shipped to three manufacturing plants.The current network has the following characteristics: The firm has identified two potential sites for a third raw material source;these are identified as Candidate A and Candidate B.From A,the costs to ship would be $9 to Plant 1,$10 to Plant 2,and $12 to Plant 3,respectively.From B,these costs would be $11,$14,and $8,respectively.The new source,wherever it is located,will have a capacity of 500 units.Set up this problem as two separate transportation matrices.(Do not solve the problem. )

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Definitions:

Critical Value

A statistical threshold value used in hypothesis testing to determine whether to reject the null hypothesis, based on the desired level of significance.

Contingency Table

A table used in statistics to show the frequency distribution of variables, and analyze the relationship between categorical variables.

Qualitative Variables

Variables that categorize or describe attributes or properties of objects, individuals, or conditions, without using numerical values.

Contingency Table

A table used in statistics to display the frequency distribution of variables, helping in analyzing the relationship between different categorical variables.