In Which of the Following Situations Should We Not Use

question 18

Multiple Choice

In which of the following situations should we not use the transportation method of linear programming?

• A) To find a new site location for a plant
• B) To minimize costs of shipping n units to m destinations
• C) To maximize profits of shipping n units to m destinations
• D) To determine which corner of a street intersection to locate a retail service facility
• E) To locate a finished goods distribution warehouse

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Definitions:

Days Sales Outstanding

A measure of the average number of days that it takes a company to collect payment after a sale has been made, indicating the effectiveness of a company's credit and collection policies.

Receivables

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales

The total amount of goods or services sold by a business within a certain period.

Total Assets Turnover Ratio

A financial metric that measures a company's effectiveness in using its assets to generate sales, calculated as sales divided by total assets.