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

question 51

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 inequality/equality that explains the capacity constraint for the Arkansas plant is ________.

• A)X₁₁ + X₂₁ + X₃₁ + X₄₁ = 1000
• B)X₁₁ + X₂₁ + X₃₁ + X₄₁ ≥ 1000
• C)X₁₂ + X₂₂ + X₃₂ + X₄₂ ≥ 1000
• D)X₂₁ + X₂₂ + X₂₃ + X₂₄ ≤ 1000

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Definitions:

Economic Profit

The total revenue a firm earns minus both its explicit and implicit costs, representing surplus value created from production.

Economic Loss

A monetary loss that occurs when the cost of producing a good or service exceeds the revenue gained from selling it.

Economically Efficient

A situation where resources are allocated in a way that maximizes the net benefit to society or an economy.

Total Costs

The sum of all expenses a firm incurs in the production of goods or services, including both fixed and variable costs.