Use the Case Below to Answer the Following Question(s)

question 73

Multiple Choice

Use the case below to answer the following question(s) .
Rolling Inc.produces cars at two plants: Baltimore,Maryland,and Orlando,Florida.They ship them to major distribution centers in Minnesota,Dallas,Los Angeles,and Memphis.The Accounting,Production,and Marketing departments have provided the information in the table below,which shows the unit cost of shipping between any plant and distribution center to minimize the total transportation cost,not exceed available capacity,and meet customer demand. Suppose demand forecasts exceed the existing capacity and the company is considering adding a new plant from among two choices: Ohio or Kansas.Both plants would have a capacity of 3,000 units but only one can be built.The table below shows the revised data. Use double-subscripted variables to simplify the formulation.Define X_ij = amount shipped from plant i to distribution center j,where i = 1 represents Baltimore,and j = 1 represents Minnesota.
Define a binary variable for the decision of which plant to build: Y₁ = 1 if the Ohio plant is built,and Y₂ = 1 if the Kansas plant is built.
-The inequality/equality that explains the demand constraint for Minnesota is ________.

• A)X₁₁ + X₁₂ + X₁₃ + X₁₄ ≤ 600
• B)X₁₁ + X₁₂ + X₁₃ + X₁₄ = 600
• C)X₁₁ + X₂₁ + X₃₁ + X₄₁ = 600
• D)X₁₁ + X₂₁ ≥ 600

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Definitions:

Required Rate

Required Rate, or the minimum expected rate of return on an investment, reflects the investor's risk tolerance and investment criteria.

Cash Flow Growth

The increase in the amount of cash that a company generates over time.

Growing Annuity

A sequence of financial transactions increasing at a steady rate over a limited duration.

Required Rate

The minimum acceptable rate of return on an investment, considering its risk.