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Future Plastics Manufactures Plastic Products for Industrial Use Worldwide

question 103

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)

-Max Z = 5x1 + 6x2
Subject to17x1 + 8x2 ? 136
3x1 + 4x2 ? 36
X1, x2 ? 0 and integer
What is the optimal solution?

Definitions:

Prefrontal Cortex

The region of the frontal lobes of the brain involved in complex cognitive behaviors, personality expression, decision making, and moderating social behavior.

Dual Process Model

A theory suggesting there are two distinct systems for processing information: a fast, automatic, intuitive system, and a slower, more analytical, reflective system.

Prefrontal Cortex

The prefrontal cortex is a region of the brain associated with executive functions like decision-making, personality expression, and managing social behavior.

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood, regulating emotions, memory, and arousal.