Use This Problem for the Next Four (4)questions

question 16

Multiple Choice

Use this problem for the next four (4) questions.
A company has manufacturing plants in Las Vegas,Portland,and Seattle.Items produced from these plants are boxed and shipped to warehouses in Minneapolis and Chicago where they are tested and repackaged for distribution to final customers in New York,Miami,and Charlotte.The network of transshipment routes shown below indicates the cost associated with shipping a box from the plants to the warehouses and then the cost of shipping the repackaged unit from the warehouses to the final customers.
Assume that the supply and demand requirements are as shown in the table below.
The company would like to determine the lowest cost shipping and distribution plan.
The following solution was produced using Microsoft Excel.

-How many units are shipped through the Minneapolis transshipment point?

• A)500
• B)1500
• C)2500
• D)3500

---

Definitions:

Invests

The act of allocating resources, usually money or capital, in something to earn financial returns or gain profitable outcomes.

Lump Sum

An amount of money paid in a single payment, rather than in installments.

11% Return

A specific rate of return on an investment, denoting a gain of eleven percent on the original amount invested.

Annual Interest Rate

The percentage of interest that is charged or earned on an investment or loan over a one-year period.