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

question 6

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.
-From the Sensitivity Report on the model, to which of the following cities can Atlanta not ship to without reducing unit cost of production?

• A) Houston
• B) San Jose
• C) Jacksonville
• D) Memphis

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The subjective judgment that people make about the characteristics and severity of a risk.

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