Formulate but Do Not Solve the Following Exercise as a Linear

question 80

Multiple Choice

Formulate but do not solve the following exercise as a linear programming problem. Steinwelt Piano manufactures uprights and consoles in two plants, plant I and plant II. The output of plant I is at most 300/month, whereas the output of plant II is at most 250/month. These pianos are shipped to three warehouses that serve as distribution centers for the company. To fill current and projected future orders, warehouse A requires a minimum of 150 pianos/month, warehouse B requires at least 200 pianos/month, and warehouse C requires at least 200 pianos/month. The shipping cost of each piano from plant I to warehouse A, warehouse B, and warehouse C is $60, $30, and $50, respectively, and the shipping cost of each piano from plant II to warehouse A, warehouse B, and warehouse C is $90, $50, and $40, respectively. What shipping schedule will enable Steinwelt to meet the warehouses' requirements while keeping shipping costs to a minimum?

• A) Minimize: Subject to:
• B) Minimize: Subject to:
• C) Minimize: Subject to:
• D) Minimize: Subject to:

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Definitions:

Net Advantage to Leasing

A calculation that compares the cost-effectiveness of leasing an asset versus purchasing it, considering all financial aspects including taxes and cash flow.

Parts Resale Value

The estimated resale value of machine parts or other components after they have been used or at the end of their useful life.

CCA Rate

Capital Cost Allowance Rate, the rate at which a business can claim depreciation on capital assets for tax purposes in certain jurisdictions.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.