Use the Table Below to Answer the Following Questions) Answer the Following Questions) Using a Linear Optimization Model

question 12

Essay

Use the table below to answer the following questions).
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. $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Transpartation } & & & & & \\\text { Model } & & & & & \\\hline & & & & & \\\hline \text { Data } & & & & & \\\hline & \text { Distribution } & & & & \\& \text { Center } & & & & \\\hline \text { Plant } & \text { Houston } & \text { Sarn Jose } & \text { Jacksorville } & \text { Mernphis } & \text { Capacity } \\\hline \text { Dallas } &13.00 & 15.25 & 10.99 & 18.48 & 1250 \\\hline \text { Atlarita } & 10.75 & 15.16 & 9.65 & 18.50 & 750 \\\hline \text { Dernand } & 175 & 325 & 480 & 950 & \\\hline\end{array}$$ Answer the following questions) using a linear optimization model.
-List out the different types of constraints that help model formulation.

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Definitions:

Risk Premium

A component of a rate of interest or return that compensates the investor for bearing some kind of risk.

Pure Play

Refers to a company that focuses on a specific industry segment, offering a narrow and specialized range of products or services.

Divisional Beta

A measurement of the risk associated with a particular division of a company, relative to the overall market.

Accounting Beta

A measure of the sensitivity of a company's operating income to changes in the economy or its sector, used for risk assessment in strategic planning.