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:

Reporting Manager

The individual to whom an employee directly reports, responsible for guiding their work and assessing their performance.

Initiation Phase

The beginning stage of a project where objectives are defined, scope is determined, and feasibility is assessed.

Project Kickoff

The initial meeting where the project team, and possibly stakeholders, come together to discuss the project's objectives, procedures, and the roles and responsibilities of team members.

Product Control

The process of managing and overseeing the development, production, and delivery of products to ensure quality and compliance with standards.