A Manufacturing Firm Has Three Plants and Wants to Find

question 13

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:
$$\text{Customer (requirement) }\\\begin{array} { l c c c c } &&&Customer ~3 &Customer ~4\\\text { Factory (capacity) } & \text { Custcmer } 1 ( 25 ) & \text { Customer } 2 ( 50 ) & ( 125 ) & ( 75 ) \\ \text { A (100) } & \$ 15 & \$ 10 & \$ 20 & \$ 17 \\ B ( 75 ) & \$ 20 & \$ 12 & \$ 19 & \$ 20 \\ \text { C (100) } & \$ 22 & \$ 20 & \$ 25 & \$ 14 \end{array}$$
How many supply nodes are present in this problem?

• A) 1
• B) 2
• C) 3
• D) 4
• E) 5

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Definitions:

Restricted Cash

Funds that are reserved for a specific purpose and cannot be used for general corporate purposes.

Separately Reported

Financial items or activities that are shown distinctly in financial statements to provide clarity and understanding of a company's financial position.

Outstanding Checks

Checks that have been issued and recorded in the account holder's register, but have not yet been cashed or cleared by the bank.

Customers

Individuals or businesses that purchase goods or services from another business.