Use the Table Below to Answer the Following Question(s) Answer the Following Question(s) Using a Linear Optimization Model

question 20

Multiple Choice

Use the table below to answer the following question(s) .
The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas and Atlanta. They ship them to major distribution centers in Houston, San Jose, Jacksonville, 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, plant capacities over the next planning period, and distribution center demands. RTC'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 Xij = amount shipped from plant i to distribution center j, where i = 1 represents Dallas,
i = 2 represents Atlanta, j = 1 represents Houston, and so on. $\begin{array}{|l|l|l|l|l|l|}\hline \text { Transportation } & \\\text { Model } & \\\hline & \\\hline \text { Data } & \\\hline & \begin{array}{l}\text { Distribution } \\\text { Center }\end{array} \\\hline \text { Plant } & \text { Houston } & \text { San Jose } & \text { Jacksonville } & \text { Memphis } & \text { Capacity } \\\hline \text { Dallas } & 13.00 & 15.25 & 10.99 & 18.48 & 1250 \\\hline \text { Atlanta } & 10.75 & 15.16 & 9.65 & 18.50 & 750 \\\hline \text { Demand } & 175 & 325 & 480 & 950 & \\\hline\end{array}$ Answer the following question(s) using a linear optimization model.
-Which of the following is the objective function for cost minimization?

• A) minimize cost = 13 X11 +15.25 X12 +10.99 X13 +18.48 X14 / 10.75 X21 +15.16 X22 +9.65 X23 +18.5 X24
• B) minimize cost = 13 X11 +15.25 X12 +10.99 X13 +18.48 X14 + 10.75 X21 +15.16 X22 +9.65 X23 +18.5 X24
• C) minimize cost = 13 X11 +15.25 X12 +10.99 X13 +18.48 X14 - 10.75 X21 +15.16 X22 +9.65 X23 +18.5 X24
• D) minimize cost = (13 X11 +15.25 X12 +10.99 X13 +18.48 X14 - 10.75 X21 +15.16 X22 +9.65 X23 +18.5 X24 )(1,250 / 750)

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Definitions:

Appraise

To appraise is to evaluate or estimate the nature, quality, ability, extent, or significance of something or someone, often used in the context of property or art valuation.

Proportion

A part of a whole expressed as a fraction or percentage, often used to compare quantities in terms of size or magnitude.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.