Table 13.11 The Neale Company Has Four Distribution Centers (A, B, C

question 95

Multiple Choice

Table 13.11
The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below.

-Use the information in Table 13.11. What can be said about a plan that ships 30,000 gallons from 1 to A; 6,000 gallons from 1 to C; 24,000 gallons from 2 to B; 24,000 gallons from 2 to D; and 30,000 gallons from 3 to C?

• A) It is not feasible in terms of wholesaler availabilities.
• B) It is not feasible in terms of satisfying distribution center demands.
• C) It is feasible, and the total monthly cost is less than or equal to $260,000.
• D) It is feasible, and the total monthly cost is greater than $260,000.

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Definitions:

General Partners

Individuals in a partnership who are responsible for the management of the partnership and are liable for its debts.

Foreign Limited Partnerships

Partnerships formed in one jurisdiction but doing business in another where the liability of some partners is limited.

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