Use the Table Below to Answer the Following Question(s) Answer the Following Question(s) Using a Linear Optimization Model

question 26

Multiple Choice

Use the table below to answer the following question(s) .
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. $\begin{array}{|l|l|l|l|l|l|}\hline \text { Transportation } & \\\text { Model } & \\\hline & \\\hline \text { Data } & \\\hline & \begin{array}{l}\text { Distribution } \\\text { Center }\end{array} \\\hline \text { Plant } & \text { Houston } & \text { San Jose } & \text { Jacksonville } & \text { Memphis } & \text { Capacity } \\\hline \text { Dallas } & 13.00 & 15.25 & 10.99 & 18.48 & 1250 \\\hline \text { Atlanta } & 10.75 & 15.16 & 9.65 & 18.50 & 750 \\\hline \text { Demand } & 175 & 325 & 480 & 950 & \\\hline\end{array}$ Answer the following question(s) using a linear optimization model.
-According to the transportation model, what is the total shipment from Dallas?

• A) 750
• B) 1,180
• C) 430
• D) 950

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Definitions:

Optimal Allocation

The most efficient distribution of resources in a manner that maximizes the net benefit received from their use.

Scarce Resources

Natural or economic resources that are limited in supply compared to the demand for them.

Long-run Equilibrium

Long-run equilibrium occurs when all firms in a market or industry are producing at their most efficient level, with no incentive to enter or exit the market.

Purely Competitive

A market structure characterized by many buyers and sellers, where each has negligible impact on market price.