A Manufacturing Firm Has Four Plants and Wants to Find

question 70

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 minimum total cost to meet all customer requirements?

• A) $8,750
• B) $8,950
• C) $9,000
• D) $9,100
• E) $10,050

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Definitions:

Chapter 11

A provision of the United States Bankruptcy Code that provides for reorganization, typically involving a corporation or partnership.

Order For Relief

A court’s grant of assistance to a complainant. In bankruptcy proceedings, the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.

Repayment Plan

An agreement between a creditor and a debtor that outlines the manner in which outstanding debts will be paid back.

Chapter 13

A bankruptcy code provision allowing individuals with a regular income to develop a plan to repay all or part of their debts under court supervision.