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

question 36

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.
-Using Solver,determine the optimal cost involved in shipping cars from Baltimore to Memphis.

• A)$21,069
• B)$12,096
• C)$12,029
• D)$21,096

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Definitions:

Entrepreneurial Alertness

An entrepreneur's ability to notice and take advantage of new business opportunities not seen by others.

Barriers Entry

Obstacles companies must overcome to enter a particular market, which may include high startup costs, regulation, or strong competition.

Infinite Number

A quantity without end or limit, often used in mathematics to describe sizes or quantities larger than any finite number.

Investment Decisions

The process of making choices about where to allocate resources and capital to generate returns.