A canned food manufacturer has its manufacturing plants in three locations across a state. Their product has to be transported to three central distribution centers, which in turn disperse the goods to seventy-two stores across the state. Which of the following is most likely to be the objective function in this scenario?
a. Increasing the number of goods manufactured at the plant
b. Decreasing the cost of their raw material sourcing
c. Minimizing the cost of shipping goods from the plant to the store
d. Minimizing the quantity of goods distributed across the stores
c
RATIONALE: The usual objective in a transportation problem is to minimize the cost of shipping goods from the origins to the destinations.
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The nominal interest rate in an economy is 5 percent, and there is also a 15 percent probability of having cash lost or stolen in the economy. Given this information, what is the cost of going to the ATM for an individual who spends $10 daily and has a total cost of holding cash = (365/T) + T. Assume that the individual visits the ATM once in every T days.
A. $1 B. $2 C. $3 D. $4
Write the objective function for this problem
Due to increased sales, a company is considering building three new distribution centers (DCs) to serve four regional sales areas. The annual cost to operate DC 1 is $500 (in thousands of dollars). The cost to operate DC 2 is $600 (in thousands of dollars.). The cost to operate DC 3 is $525 (in thousands of dollars). Assume that the variable cost of operating at each location is the same, and therefore not a consideration in making the location decision. The table below shows the cost ($ per item) for shipping from each DC to each region. Region DC A B C D 1 1 3 3 2 2 2 4 1 3 3 3 2 2 3 The demand for region A is 70,000 units; for region B, 100,000 units; for region C, 50,000 units; and for region D, 80,000 units. Assume that the minimum capacity for the distribution center will be 500,000 units.
The riskiness of publicly traded bond issues is rated by independent agencies. According to Moody's rating system, an Aaa bond and a Caa bond are ________ and ________ respectively
A) speculative; investment grade B) prime quality; medium grade C) prime quality; speculative D) medium grade; lowest grade
In which of the following cases would centralization of the advertising function be a disadvantage?
A. when conditions in the various markets differ widely B. when a product is categorized as a "high-technology product" with universal appeal C. when a company wants to cut costs D. when an advertiser wants to keep control of its brand message and image E. when an advertiser wants to maintain a consistent brand image across markets