A Manufacturing Firm Has Four Plants and Wants to Find

question 68

Multiple Choice

A manufacturing firm has four 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:
$$\text{Customer (requirement) }\\\begin{array} { l c c c c } &&Customer ~2 &Customer ~3& Customer ~4\\\text { Factory (capacity) }&\text{ Customer } 1 ( 125 ) & ( 150 ) & ( 175 ) & ( 75 ) \\ A ( 100 ) & \$ 15 & \$ 10 & \$ 20 & \$ 17 \\ \mathrm {~B} ( 75 ) & \$ 20 & \$ 12 & \$ 19 & \$ 20 \\ \mathrm { C } ( 100 ) & \$ 22 & \$ 20 & \$ 25 & \$ 14 \\ \mathrm { D } ( 250 ) & \$ 21 & \$ 15 & \$ 28 & \$ 12 \end{array}$$
Which type of network optimization problem is used to solve this problem?

• A) Maximum-Cost Flow problem
• B) Minimum-Cost Flow problem
• C) Maximum Flow Problem
• D) Minimum Flow Problem
• E) Shortest Path Problem

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Definitions:

Labor Demand Curve

A curve representing the quantity of labor that employers wish to hire at different wage rates.

Technological Advances

Innovations and improvements in technology that enhance efficiency, productivity, or quality in goods and services.

World Price

The price of a good that prevails in the world market for that good.

Oil Field

A region with an abundance of oil wells extracting petroleum (crude oil) from below ground.