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

question 52

Multiple Choice

Use the case below to answer the following question(s) .
Stoudemire Inc.produces televisions at two plants: Arizona and Arkansas.They ship them to major distribution centers in San Antonio,Washington,Miami,and Dallas.The table shown below provides the unit cost of shipping between any plant and distribution center,plant capacities over the next planning period,and distribution center demands.Stoudemire's supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost,not exceed available capacity,and meet customer demand. Assume X_ij = amount shipped from plant i to distribution center j,where i = 1 represents Arizona,i = 2 represents Arkansas,j = 1 represents San Antonio,j = 2 represents Washington,and so on.
-The number of television sets shipped from the plant in Arkansas to the distribution center in Miami is ________.(Hint: Use Solver)

• A)450 units
• B)300 units
• C)100 units
• D)950 units

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Definitions:

Value

The relevance, merit, or utility of something for someone.

Transaction-oriented Marketing

Marketing strategies focused primarily on making sales transactions rather than building long-term relationships with customers.

Premium Pricing

A competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.