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:

Orogeny

The process of mountain formation, especially by the folding and faulting of the Earth's crust, typically as a result of the collision of tectonic plates.

Tectonic Activity

The movement and behavior of the Earth's lithosphere, including the processes of plate tectonics that lead to earthquakes, volcanic eruptions, and the creation of mountain ranges.

Continental Rifting

A tectonic process whereby the continental lithosphere stretches and breaks apart, leading to the formation of new ocean basins.

Passive Margin

The transition between oceanic and continental crust that is not an active plate boundary, typically characterized by a broad continental shelf and little seismic activity.