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

question 13

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.
-According to the Sensitivity report on the model, by what price should the unit cost of shipment reduce to make shipment from Dallas to Houston feasible?

• A) $8.68
• B) $2.16
• C) $10.84
• D) $3.41

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Definitions:

Economic Event

An action that has the potential to impact the financial position of a company, such as a sale, purchase, or investment.

Transaction

An economic event that involves the exchange of goods, services, or funds between two parties.

Accounting Process

A systematic approach to recording, summarizing, and reporting financial transactions for a business.

Economic Events

Any occurrence that impacts the financial position or performance of a business, affecting its assets, liabilities, or equity.