Minimizing Shipping Costs

question 125

Multiple Choice

Minimizing Shipping Costs. Towns A, B, C, and D are located as shown in the figure. Two highways link town A to town D. Route 1 runs from town A to town D via town B, and Route 2 runs from town A to town D via town C. Suppose a fleet of 100 automobiles are to be shipped from an assembly plant in town A to town D. They may be shipped either by freight train along Route 1 at a cost of 20¢/mile/automobile or by truck along Route 2 at a cost of 18¢/mile/automobile. Which means of transportation minimizes the shipping cost?

• A) by truck along Route 2
• B) both means cost the same
• C) by train along Route 1

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Definitions:

American Psychiatric Association

A major professional organization of psychiatrists in the United States, focused on mental health advocacy and education.

Environmental Force

External factors such as social, economic, technological, competitive, and regulatory conditions that affect an organization's ability to operate effectively.

Communicate

To convey information or express thoughts and ideas clearly to someone else through speech, writing, or other forms of media.

Exchange

The act of giving one thing and receiving another in return, especially in terms of goods, services, or monetary currency.