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A Firm Has 4 Plants That Produce Widgets The Firm Needs to Satisfy All Demand Each Day, but B

Question 58

Multiple Choice

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 CostsCustomerper unit Plant123A$25$35$15 B$20$30$40C$40$35$20D$15$20$25\begin{array}{c}Shipping~ Costs&&&Customer\\per~unit~Plant&&1&2&3\\\mathrm{A} && \$ 25 & \$ 35 & \$ 15 \\\mathrm{~B} && \$ 20 & \$ 30 & \$ 40 \\\mathrm{C} && \$ 40 & \$ 35 & \$ 20 \\\mathrm{D} && \$ 15 & \$ 20 & \$ 25\end{array}
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?


A) Resource-allocation
B) Cost-benefit-trade-off
C) Transshipment problems
D) Transportation problems
E) Assignment problems

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