Small Motors for Garden Equipment Are Produced at Four Manufacturing $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text { To Plant }$

question 86

Essay

Small motors for garden equipment are produced at four manufacturing facilities and need to be shipped to three plants that produce different garden items (lawn mowers, rototillers, leaf blowers). The company wants to minimize the cost of transporting items between the facilities, taking into account the demand at the three different plants, and the supply at each manufacturing site. The table below shows the cost to ship one unit between each manufacturing facility and each plant, as well as the demand at each plant and the supply at each manufacturing facility.

$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text { To Plant }$
$\begin{array}{crrrrr}\text{From Manufacturing Facility} &&A & B & C & Supply\\\hline 1 & & 4 & 4.5 & 3.2 & 200 \\2 & & 3.5 & 3 & 4 & 200 \\3 & & 4 & 3.5 & 4.25 & 300 \\ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text { Demand } && 250 & 150 & 200 &\end{array}$


Write the formulation for this problem.

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Definitions:

Employee Stock Options

A benefit offered by companies to employees, allowing them to purchase company stock at a predetermined price, typically as a form of incentive.

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Repriced

Adjusted to a new price level, often in the context of securities, goods, or services to reflect changes in market conditions.

European Call Option

A European call option is a type of options contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specific price only on the expiration date.