Exhibit 7.4 The Following Questions Are Based on the Problem Below

question 2

Essay

Exhibit 7.4
The following questions are based on the problem below.
Robert Gardner runs a small, local-only delivery service. His fleet consists of three smaller panel trucks. He recently accepted a contract to deliver 12 shipping boxes of goods for delivery to 12 different customers. The box weights are: 210, 160, 320, 90, 110, 70, 410, 260, 170, 240, 80 and 180 for boxes 1 through 12, respectively. Since each truck differs each truck has different load capacities as given below: Robert would like each truck equally loaded, both in terms of number of boxes and in terms of total weight, while minimizing his shipping costs. Assume a cost of $50 per item for trucks carrying extra boxes and $0.10 per pound cost for trucks carrying less weight.
The following integer goal programming formulation applies to his problem.
Y₁ = weight loaded in truck 1; Y₂ = weight loaded in truck 2; Y₃ = weight loaded in truck 3;
X_i,j = 0 if truck i not loaded with box j; 1 if truck i loaded with box j. Given the following spreadsheet solution of this integer goal programming formulation, answer the following questions.
-Refer to Exhibit 7.4. What formulas should go in cell E26 of the spreadsheet?

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Definitions:

Discriminatory Pricing

The practice of charging different prices to different consumers for the same product or service, based on factors like race, gender, or geographic location, which is often considered unethical and illegal.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to prohibit monopolistic business practices.

Horizontal Restraint

A term used in antitrust law to describe practices that restrict competition among firms operating at the same level of the market, such as price-fixing agreements between competitors.

Predatory Pricing

A pricing strategy where a product or service is set at a very low price with the intent to drive competitors out of the market or create barriers to entry for potential new competitors.