The Nelson Company Has Four Distribution Centers (A, B, C

question 90

Multiple Choice

The Nelson Company has four distribution centers (A, B, C, and D) that require shipments of 20, 30, 40, and 10 units per week, respectively. Its three plants (1, 2, and 3) have monthly capacities of 40, 30, and 30, respectively. Shipping costs (in $) follow:
$$\begin{array}{l}\text { Distribution Center }\\\begin{array} { | c | c | c | c | c | } \hline \text { Plant } & \text { A } & \text { B } & \text { C } & \text { D } \\\hline 1 & 40 & 30 & 10 & 50 \\2 & 20 & 20 & 30 & 40 \\3 & 10 & 50 & 10 & 30 \\\hline\end{array}\end{array}$$
What can be said about a plan that ships 40 units from 1 to C, 30 units from 2 to B, 20 units from to A, and 10 units from 3 to D?

• A) It is feasible, and the weekly shipping cost is less than $1,600.
• B) not feasible in terms of plant capacities.
• C) feasible, and the weekly shipping cost is greater than $2,000.
• D) not feasible in terms of satisfying distribution center demands.

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