A Computer Manufacturing Company Wants to Develop a Monthly Plan

question 21

Essay

A computer manufacturing company wants to develop a monthly plan for shipping finished products from three of its manufacturing facilities to three regional warehouses. It is thinking about using a transportation LP formulation to exactly matched capacities and requirements. Data on transportation costs (in dollars per unit), capacities, and requirements are given below:
$\begin{array}{ccccc}& \text { Plant } & \text { Plant } & \text { Plant } \\\text { Warehouse } & 1 & 2 & \underline{3}&\text { Requirements }\\X & 2.41 & 1.63 & 2.09 & 8,000 \\\mathrm{Y} & 3.18 & 5.62 & 1.74 & 2,000 \\\mathrm{Z} & 4.12 & 3.16 & 3.09 & 3,000 \\\text { Capacities } & 4,000 & 6,000 & 3,000 &\end{array}$
a. How many variables are involved in the LP formulation?
b. How many constraints are there in this problem?
c. What is the constraint corresponding to plant 2?

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Definitions:

Per Se Violation

An action deemed illegal, without the need for further evidence of its harm or anticompetitive effect, under certain laws or regulations.

Antitrust Law

Laws protecting commerce from unlawful restraints and anticompetitive practices.

Restraint On Trade

Practices or agreements that restrict free competition and trade, often scrutinized and regulated by law.

Rule Of Reason

A test used to determine whether an anticompetitive agreement constitutes a reasonable restraint on trade. Courts consider such factors as the purpose of the agreement, its effect on competition, and whether less restrictive means could have been used.