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A beverage producer produces cola at two bottling plants and distributes it to 4 major cities in the Southeast. The table below shows the bottling plant capacities, the number of cases to be shipped to each city, and the transport costs ($ per case) between plants and cities. The producer's objective is to meet its delivery requirements while minimizing its total transport costs.
(a) Formulate the firm's linear programming problem.
(b) The optimal solution is: XC = 1,200, XD = 1,800, YA = 1,000, YB = 1,400, and YC = 900. What is the shadow price associated with Plant Y capacity? Show that the increase in total cost in delivering an additional case to City D is $.20.
Global Expansion
The process of a business extending its operations or influence beyond its original national boundaries.
Organizational Objectives
Goals or targets that an organization aims to achieve over a specific period.
Changing Environment
Refers to the dynamic and often unpredictable shifts within the external conditions impacting an organization, requiring adaptability and strategic planning.
Global Economy
Describes an interconnected world economy where goods, services, and labor move across national borders with relatively few restrictions, influenced by global events and market trends.
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