Madlantic Devices Designs and Manufactures High-End Medical Devices

question 61

Multiple Choice

Madlantic Devices designs and manufactures high-end medical devices. The facilities in Madison and Atlanta serve as design and component manufacturing facilities. Components are then shipped to warehouses in Philadelphia or Knoxville, where they are held until final assembly is completed at either Dayton, Bloomington, or Albany.
Manufacturing capacity in Madison and Atlanta is 1000 units. Demand at Dayton, Bloomington, and Albany is 450, 500, and 610, respectively.
The network representing the shipping routs is shown below.
The costs for shipping between each facility is shown below. A blank cell indicates that shipping between two facilities is not permitted.

-The constraint for the quantity shipped from Madison is:

• A) X13 + X 14 = 1000
• B) X13 + X 14 ≤ 1000
• C) X13 + X 14 ≥ 1000
• D) X13 + X 14 - X34 = 1000

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their cash flow and ensure liquidity.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.

Doubtful Debts

Monetary amounts owed to a company that are considered unlikely to be paid, often set aside as an allowance for doubtful accounts.

Inventory Balance

Indicates the amount or value of inventory on hand at any given point in time, factoring in additions, subtractions, and adjustments.