In: Accounting
FlexSteal, marketed as a miracle brush-on sealant and baldness
cure, is manufactured at three plants that are struggling to keep
up with the demand at the four regional centers. The cost to ship a
truckload from each of the existing plants to the regional centers
is shown in the table. Note that the capacity and the total demand
are both measured in truckloads.
| Philadelphia | Atlanta | Dallas | Los Angeles | Capacity |
Plant 1 | 89 | 75 | 93 | 115 | 400 |
Plant 2 | 120 | 88 | 103 | 93 | 500 |
Plant 3 | 95 | 82 | 112 | 98 | 500 |
Total Demand | 350 | 350 | 350 | 350 | |
The supply chain manager has explored plant construction costs in
two other cities as well as the cost to ship a truckload from each
of the plants to the regional centers. The current plan is to build
another plant with a capacity of 400 to allow room for sales
growth. The construction cost for the new plants and cost to ship
to each of the regional centers is shown here.
| Philadelphia | Atlanta | Dallas | Los Angeles | Cost to Build |
Plant A | 94 | 78 | 95 | 95 | $23,500 |
Plant B | 95 | 88 | 88 | 94 | $26,000 |
What is the result of formulating the linear programming model of
the original network configuration (before considering plants A and
B) as follows?
Minimize
subject to ≤ Dj
≤ Ki
Group of answer choices
The shipping quantity from Plant 3 to Atlanta will be 50.
The shipping quantity from Plant 3 to Atlanta will be 0.
The shipping quantity from Plant 3 to Atlanta will be 350.
The shipping quantity from Plant 3 to Atlanta will be 300.