A Manufacturing Firm Has Three Plants and Wants to Find

question 74

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 minimum total cost to meet all customer requirements?

• A) $4,475
• B) $4,500
• C) $4,775
• D) $4,950
• E) $5,150

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Definitions:

Financial Account

A component of a country’s balance of payments that records transactions of foreign investment and domestic investment abroad, reflecting changes in ownership of international assets.

Financial Account

A component of a country's balance of payments that records transactions involving financial assets and liabilities between residents and non-residents over a period.

Capital Account

A national account that shows the net change in asset ownership for a nation, including assets from financial and physical capital.

Current Account

This term refers to a country's transactions with the rest of the world, including trade in goods and services, earnings on investments, and transfer payments.