Consider the Following Network Representation of Shipment Routes Between Plants

question 1

Multiple Choice

Consider the following network representation of shipment routes between plants, a distribution center, and retail outlets. The numbers next to the arcs represent shipping costs. For example, the cost of shipping from plant 1 to distribution center 3 is equal to $2.




Assume that Plant 1 can supply 400 units and Plant 2, 500 units. Demand at the retail outlets are: Outlet 4, 300 units; Outlet 5, 250 units; Outlet 6, 450 units.
-Which constraint represents transshipment through the distribution center?

• A) 2X13 + 3X23 = 900
• B) 2X13 + 3X23 + 5X34 + 4X35 + 3X36 = 0
• C) X13 + X23 - X34 - X35 - X36 = 0
• D) X13 + X23 - X34 - X35 - X36 ≥ 0

Analyze the impacts of the Robinson-Patman act on pricing strategies.

Differentiate between direct and indirect price discrimination.

Evaluate how firms maximize profits through price discrimination.

Calculate optimal pricing strategies for maximizing profits.

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Definitions:

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Sensory Awareness

The conscious perception and interpretation of sensory stimuli from the environment.

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A psychedelic drug derived from certain types of cactus plants, known for its hallucinogenic effects.