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

question 54

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.
-If we are to use Solver to determine where the new plant has to be built,what is the amount shipped from Ohio to Los Angeles?

• A)0 units
• B)400 units
• C)1,000 units
• D)3,000 units

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Definitions:

Authority

A recognized power or right, often referring to the ability to make decisions and enforce obedience.

Resource Allocation

The process of distributing available resources among various projects, tasks, or investments in an efficient manner.

Task Conflicts

Disagreements among individuals about the content and outcomes of the task being performed.

Nature

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