A Snack Food Producer Runs Four Different Plants That Supply

question 69

Essay

A snack food producer runs four different plants that supply product to four different regional distribution centers. The division operations manager is focused on one product, so he creates a table showing each plant's monthly capacity and each distribution center's monthly demand (both amounts in cases) for the product. The division manager supplements this table with the cost data to ship one case from each plant to each distribution center. Formulate an objective function and constraints that will solve this problem using linear programming.

---

Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument.

Corporate Charter

A corporate charter is a legal document establishing a corporation and outlining its structure, objectives, and operations as recognized by the state.

Cash Dividend

This is a payment made by a company out of its earnings to shareholders, distributed in the form of cash.

Par Common Stock

The nominal or face value assigned to a share of common stock in the company’s charter.