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

question 100

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 Ohio plant?

• A)X₃₁ + X₃₂ + X₃₃ + X₃₄ ≥ 3,000Y₂
• B)X₃₁ + X₃₂ + X₃₃ + X₃₄ ≤ 3,600
• C)X₃₁ + X₃₂ + X₃₃ + X₃₄ ≤ 1,400
• D)X₃₁ + X₃₂ + X₃₃ + X₃₄ ≤ 3,000Y₁

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Definitions:

Market Power

The ability of a company or entity to influence the price and output levels in the market.

Customers' Preferences

The tastes, preferences, or choices of consumers regarding products or services which can impact market demand and influence business strategies.

Pricing Strategies

Methods used by companies to price their products or services, aiming to maximize profits while meeting consumer demand and competition.

Product/Service Creation

The process of developing new products or services, from ideation and design through to market introduction.