In Which of the Following Situations Should We Not Use

question 18

Multiple Choice

In which of the following situations should we not use the transportation method of linear programming?

• A) To find a new site location for a plant
• B) To minimize costs of shipping n units to m destinations
• C) To maximize profits of shipping n units to m destinations
• D) To determine which corner of a street intersection to locate a retail service facility
• E) To locate a finished goods distribution warehouse

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Definitions:

Financial Advantage

The benefit gained in financial terms, often seen as increased profits, cost savings, or return on investment.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as rent, salaries of managerial staff, and property taxes.

Dropping Product

The decision made by a company to discontinue producing and selling a specific product due to factors like poor sales, strategic realignment, or cost inefficiency.

Financial Advantage

Refers to the benefits gained in financial terms, often seen as an edge over competitors or a favorable position in the market.