A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets per day. Plant D can produce 50 widgets per day. Each day, the widgets produced in the plants must be shipped to satisfy the demand of 3 customers. Customer 1 requires 75 units per day, customer 2 requires 100 units per day, and customer 3 requires 175 units per day. The shipping costs for each possible route are shown in the table below: Shipping Costs per unit Plant Customer 2 $ 35 $ 30 $ 35 $20 3 $ 15 $ 40 $ 20 $ 25 1 A $ 25 B $20 $ 40 $ 15 C D The firm needs to satisfy all demand each day, but would like to minimize the total costs. The firm's problem falls within which classification? Multiple Choice Resource-allocation Cost-benefit-trade-off Transshipment problems

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section: Chapter Questions
Problem 53P
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A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets per day. Plant D can produce 50 widgets per day. Each day,
the widgets produced in the plants must be shipped to satisfy the demand of 3 customers. Customer 1 requires 75 units per day, customer 2 requires 100
units per day, and customer 3 requires 175 units per day. The shipping costs for each possible route are shown in the table below:
Shipping Costs
Customer
per unit Plant
A
1
2
$ 25
$ 35
$ 30
$ 35
$20
$ 15
$ 40
$ 20
$ 25
$20
C
$ 40
$15
The firm needs to satisfy all demand each day, but would like to minimize the total costs.
The firm's problem falls within which classification?
Multiple Choice
Resource-allocation
Cost-benefit-trade-off
Transshipment problems
Transcribed Image Text:A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets per day. Plant D can produce 50 widgets per day. Each day, the widgets produced in the plants must be shipped to satisfy the demand of 3 customers. Customer 1 requires 75 units per day, customer 2 requires 100 units per day, and customer 3 requires 175 units per day. The shipping costs for each possible route are shown in the table below: Shipping Costs Customer per unit Plant A 1 2 $ 25 $ 35 $ 30 $ 35 $20 $ 15 $ 40 $ 20 $ 25 $20 C $ 40 $15 The firm needs to satisfy all demand each day, but would like to minimize the total costs. The firm's problem falls within which classification? Multiple Choice Resource-allocation Cost-benefit-trade-off Transshipment problems
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