Formulate and Solve Optimization Models with Binary Variables and Logical

question 9

Multiple Choice

Formulate and solve optimization models with binary variables and logical constraints. LO2: Use a modern software tool to perform statistical calculations.
Use the table below to answer the following question(s) using the standard Solver. Below is the spreadsheet for a plant location model: $\begin{array}{|l|l|l|l|l|l|l|}\hline &{\text { A }} & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline 1 & \begin{array}{l}\text { Plant Location } \\\text { Model }\end{array} & & & & & \\\hline 2 & & & & & & \\\hline 3 & \text { Data } & & & & & \\\hline4&&&\text { Distribution Center }\\\hline 5 & \text { Plant } & \text { Houston } & \text { San Jose } & \text { Jacksonville } & \text { Memphis } & \text { Capacity } \\\hline 6 & \text { Dallas } & \$ 11.80 & \$ 16.48 & \$ 12.35 & \$ 18.56 & 1,300 \\\hline 7 & \text { Atlanta } & \$ 8.54 & \$ 14.65 & \$ 9.58 & \$ 18.25 & 750 \\\hline 8 & \text { Detroit } & \$ 12.89 & \$ 10.78 & \$ 7.85 & \$ 10.28 & 1,400 \\\hline 9 & \text { Baltimore } & \$ 14.36 & \$ 18.95 & \$ 14.61 & \$ 6.64 & 1,300 \\\hline 10 & \text { Demand } & 350 & 450 & 800 & 1,700 & \\\hline 11 & \\\hline 12 & \text { Model } \\\hline 13 & \\\hline 14 & \text { Amount Shipped }&&\text { Distribution Center } \\\hline 15 & \text { Plant } & \text { Houston } & \text { San Jose } & \text { Jack sonville } & \text { Memphis } & \text { Total Shipped } \\\hline 16 & \text { Dallas } & & & & & \\\hline 17 & \text { Atlanta } \\\hline 18 & \text { Detroit } \\\hline 19 & \text { Baltimore } \\\hline 20 & \text { Supply } \\\hline 21 & \\\hline 22 & \text { Total Cost } \\\hline 23 & \$ 0.00 \\\hline\end{array}$
-What is the total cost incurred?

• A) $ 27,297
• B) $ 35,233
• C) $ 42,675
• D) $ 47,864

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Definitions:

Gross Accounts Receivable

The total amount of money owed to a company by its customers for goods or services delivered but not yet paid for, before any deductions for returns or bad debts.

Credit Sales

Credit sales refer to transactions where goods are sold and payment is allowed at a later date, extending credit to the buyer.

Current Ratio

A financial metric assessing a firm's capacity to settle short-term debts or obligations due within a year, determined by dividing current assets by current liabilities.

Current Liabilities

Current Liabilities are obligations a company is expected to pay within the upcoming year, including accounts payable, short-term loans, and other accrued liabilities.