A Manufacturing Firm Has Three Plants and Wants to Find

question 25

Multiple Choice

A manufacturing firm has three plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below:
$$\text{Customer (requirement) }\\\begin{array} { l c c c c } &&&Customer ~3 &Customer ~4\\\text { Factory (capacity) } & \text { Custcmer } 1 ( 25 ) & \text { Customer } 2 ( 50 ) & ( 125 ) & ( 75 ) \\ \text { A (100) } & \$ 15 & \$ 10 & \$ 20 & \$ 17 \\ B ( 75 ) & \$ 20 & \$ 12 & \$ 19 & \$ 20 \\ \text { C (100) } & \$ 22 & \$ 20 & \$ 25 & \$ 14 \end{array}$$
Note: This question requires Solver.
Formulate the problem in Solver and find the optimal solution. What is the optimal quantity to ship from Factory A to Customer 2?

• A) 25 units
• B) 50 units
• C) 75 units
• D) 100 units
• E) 125 units

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Definitions:

Monthly Issues

Refers to publications or reports that are released once every month.

Inheritance

Assets received from someone who has died.

Divisional Sales Revenues

The total amount of money generated from sales activities by a specific division within a company during a given period.

Customer Satisfaction

A measure of how products or services provided by a company meet or surpass customer expectation.