Reference - 8

question 35

Multiple Choice

Reference - 8.2: Use the information given below to answer questions
A canned food manufacturer has its manufacturing plants in three locations across a state. Their product has to be transported to three central distribution centers, which in turn disperse the goods to seventy-two stores across the state.
-Reference - 8.2: Which of the following is most likely to be the objective function in this scenario?

• A) Increasing the number of goods manufactured at the plant
• B) Decreasing the cost of their raw material sourcing
• C) Minimizing the cost of shipping goods from the plant to the store
• D) Minimizing the quantity of goods distributed across the stores

---

Definitions:

Maximin Criterion

A decision-making rule used for minimizing the worst-case scenario loss.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.

EMV

stands for Expected Monetary Value, a concept in risk management used to calculate the average outcome of future events and their financial impacts.