Companies A, B, and C Supply Components to Three Plants

question 32

Multiple Choice

Companies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E) . It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D and E can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice.
-Which of these constraints allows for some inventory to be held at one of the crossdock facilities?

• A) AD + BD + CD - DF - DG - DH ≥ 0
• B) AD + BD + CD - DF - DG - DH = 600
• C) AD + BD + CD = DF - DG - DH = 600
• D) AD + BD + CD + DF + DG + DH = 600

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Definitions:

Scienter

Knowledge of wrongdoing or fraudulent intent in legal contexts, essential for establishing liability in some cases.

Misstatement

An error or inaccuracy in a statement or document, which can be either unintentional or deliberate.

Fraud

An intentional deception made for personal gain or to damage another individual.

Misrepresentation Liability

Legal responsibility arising from providing false or misleading statements that someone else relies on to their detriment.