A Manufacturing Firm Has Four Plants and Wants to Find

question 60

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:
$$\text{Customer (requirement) }\\\begin{array} { l c c c c } &&Customer ~2 &Customer ~3& Customer ~4\\\text { Factory (capacity) }&\text{ Customer } 1 ( 125 ) & ( 150 ) & ( 175 ) & ( 75 ) \\ A ( 100 ) & \$ 15 & \$ 10 & \$ 20 & \$ 17 \\ \mathrm {~B} ( 75 ) & \$ 20 & \$ 12 & \$ 19 & \$ 20 \\ \mathrm { C } ( 100 ) & \$ 22 & \$ 20 & \$ 25 & \$ 14 \\ \mathrm { D } ( 250 ) & \$ 21 & \$ 15 & \$ 28 & \$ 12 \end{array}$$
How many arcs will the network have?

• A) 3
• B) 4
• C) 7
• D) 12
• E) 16

---

Definitions:

Stereotype

Overgeneralized and oversimplified beliefs about a group of people based on their membership in that group.

Confirmation Bias

The propensity to explore, interpret, select, and revive information in ways that strengthen one's existing convictions or hypotheses.

Fundamental Attribution Error

The tendency to overestimate the influence of personal characteristics and underestimate the influence of situational factors in explaining others' behavior.

Illusory Correlation

A cognitive bias wherein people falsely perceive an association between two events or situations.