Solved

Future Plastics Manufactures Plastic Products for Industrial Use Worldwide

question 51

Multiple Choice

Future Plastics manufactures plastic products for industrial use worldwide. In order to meet demand, they are considering setting up a facility in each region in order to lower transportation cost and to possibly avoid duties that could be imposed if the product is imported from another region. The disadvantage of this approach is that plants are sized to meet local demand and may not fully exploit economies of scale. Therefore, Future Plastics is also interested in determining the appropriate size of the facility to build in each location and are choosing between facilities with capacities of 5 or 10 million.
The fixed costs of each facility as well as the cost of shipping between regions is shown in the table below. The decision variables are defined as follows:
Xij = quantity shipped from supply region i to demand region j. i = 1, 2, 3, 4 and j = 1, 2, 3, 4.
Yik = 1 if facility k is selected for supply region i; 0 otherwise, where i = 1, 2, 3, 4 for each supply region; k = 1 (low capacity facility) or 2 (high capacity facility)

-The constraint for the North American supply region is:

Definitions:

Sound Waves

Sound waves are vibrations that travel through the air or another medium, which can be heard when they reach a person's or animal's ear.

Amplitude

The magnitude or intensity of a fluctuating signal, such as sound, light, or an electric current, often measured from its rest position to its peak.

Conduction Deafness

A type of hearing loss where there is a problem transferring sound waves anywhere along the pathway from the outer ear to the inner ear.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves, contributing to the ability to hear.