A New Pizza Restaurant Is Moving into Town $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$

question 53

Multiple Choice

A new pizza restaurant is moving into town. The owner is considering a number of potential sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A-J) and is currently considering a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8
s.t.x1 + x2 + x5 + x7 ? 1 {Neighborhood A constraint}
X1 + x2 + x3 ? 1 {Neighborhood B constraint}
X5 + x6 + x8 ? 1 {Neighborhood C constraint}
X1 + x4 + x7 ? 1 {Neighborhood D constraint}
X2 + x3 + x7 ? 1 {Neighborhood E constraint}
X3 + x4 + x8 ? 1 {Neighborhood F constraint}
X2 + x5 + x7 ? 1 {Neighborhood G constraint}
X1 + x4 + x6 ? 1 {Neighborhood H constraint}
X1 + x6 + x8 ? 1 {Neighborhood I constraint}
X1 + x2 + x7 ? 1 {Neighborhood J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints is a set covering constraint?

• A) Neighborhood A constraint
• B) Neighborhood C constraint
• C) Neighborhood F constraint
• D) All of the choices are correct.
• E) None of the choices is correct.

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Definitions:

Product Costs

Direct costs associated with manufacturing a product, including materials, labor, and overhead expenses.

Valuation of Inventories

The process of determining the monetary value of inventory, using methods like FIFO, LIFO, or weighted average cost.

Management Decision Making

The process managers use to identify and solve problems, involving the evaluation of options and selection of strategies.

Pricing Decisions

Pricing decisions involve determining the selling price of goods or services, taking into account factors like costs, market demand, competition, and margins.