A Manufacturing Firm Has Four Plants and Wants to Find

question 83

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:
$$\text{Customer (requirement) }\\\begin{array} { l c c c c } &&Customer ~2 &Customer ~3& Customer ~4\\\text { Factory (capacity) }&\text{ Customer } 1 ( 125 ) & ( 150 ) & ( 175 ) & ( 75 ) \\ A ( 100 ) & \$ 15 & \$ 10 & \$ 20 & \$ 17 \\ \mathrm {~B} ( 75 ) & \$ 20 & \$ 12 & \$ 19 & \$ 20 \\ \mathrm { C } ( 100 ) & \$ 22 & \$ 20 & \$ 25 & \$ 14 \\ \mathrm { D } ( 250 ) & \$ 21 & \$ 15 & \$ 28 & \$ 12 \end{array}$$
Note: This question requires Solver.
Formulate the problem in Solver and find the optimal solution. What is the optimal quantity to ship from Factory B to Customer 3?

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

Differentiate between product failure reasons and successful marketing strategies.

Grasp the concept of derived demand in the context of business products.

Learn various methods for generating new product ideas and the role of innovation.

Understand the various reasons why new products fail in the market.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Tax Imposition

The act of placing a financial charge or levy upon a taxpayer by a governmental organization.

Buyers

Individuals or entities that purchase goods or services from sellers in exchange for money or other valuable considerations.

Sellers

Individuals or entities that offer goods or services for sale to potential buyers.