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

question 15

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.
-Which of the following is the capacity constraint that is related to the Baltimore plant?

• A)X₁₁ + X₁₂ + X₁₃ + X₁₄ ≤ 4,000
• B)X₁₁ + X₁₂ + X₁₃ + X₁₄ ≤ 2,400
• C)X₁₁ + X₁₂ + X₁₃ + X₁₄ ≤ 3,000Y₁
• D)X₁₁ + X₁₂ + X₁₃ + X₁₄ ≥ 3,000Y₂

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors, using fewer resources.

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Lumber that has been manufactured into planks and beams, marking a step in the journey of producing wood products.

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than others.

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A natural mineral formation containing copper in sufficient concentration to make its economic extraction feasible.