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:

Filling

In manufacturing, it refers to the process of putting product into containers or packaging; in accounting, it could refer to completing or updating records but this usage is less direct.

Plant Assets

These are long-term tangible assets that are used in the production of goods and services and are expected to provide benefits for more than one year.

Income Statement

A financial statement that reports a company's financial performance over a specific period, displaying revenue, expenses, and net income.

Additions and Improvements

Capital expenditures made to increase the value of existing assets, often leading to a longer useful life or increased functionality.