Table 13.9 Sagebrush Company Has Four Warehouses (A, B, C, and D)

question 84

Multiple Choice

Table 13.9
Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 250, respectively. Plant capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau. For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit.

-Use the information in Table 13.9. What can be said about a plan that ships 200 units from 1 to A, 100 units from 1 to B, 100 units from 2 to B, 300 units from 2 to C, and 250 units from 3 to D?

• A) It is not feasible in terms of plant capacities.
• B) It is not feasible in terms of satisfying warehouse demands.
• C) It is feasible, but not the least-cost allocation pattern.
• D) It is the optimal solution.

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Definitions:

Joint Tenants

A form of property co-ownership where each party has an equal share and the right of survivorship.

Tenants in Common

A form of co-ownership where each party owns a separate and undivided interest in the property, and upon death, their share is inheritable by their heirs.

Duplex

A building that is divided into two separate units, each with its own entrance and living space, often used for residential purposes.

Will

A legal document that outlines how a person's assets and estate should be distributed among beneficiaries after their death.