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

question 40

Multiple Choice

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. $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Transportation } & & & & & \\\text { Model } & & & & & \\\hline & & & & & \\\hline \text { Data } & & & & & \\\hline & \text { Distribution } & & & & \\& \text { Center } & & & & \\\hline \text { Plant } & \text { Houston } & \text { Sarn Jose } & \text { Jacksorville } & \text { Mernphis } & \text { Capacity } \\\hline \text { Dallas } &13.00 & 15.25 & 10.99 & 18.48 & 1250 \\\hline \text { Atlarita } & 10.75 & 15.16 & 9.65 & 18.50 & 750 \\\hline \text { Dernand } & 175 & 325 & 480 & 950 & \\\hline\end{array}$$ Answer the following questions) using a linear optimization model.
-Based on the Sensitivity Report on the model, which of the following is the savings on a reduction of demand of 2 units at Jacksonville?

• A) $2.5
• B) $1.25
• C) $19.48
• D) $16.98

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Definitions:

Continental

Refers to phenomena or features associated with the continents, in contrast to oceanic aspects.

Oceanic

Pertaining to the ocean, especially the vast, deep areas beyond the continental shelf.

Lithosphere

The rigid outer layer of the Earth, encompassing the crust and the uppermost part of the mantle.

Crust

The outermost solid layer of Earth, consisting of continental and oceanic crust.