Question: According to the Sensitivity report on the model ( figure 1 ) , by what price should the unit cost of shipment reduce to make

According to the Sensitivity report on the model (figure 1), by what price should the unit cost of shipment reduce to make shipment from Dallas to Houston feasible?
A) $8.68
B) $2.16
C) $10.84
D) $3.41
Figure 1
The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas and Atlanta. They ship them to major distribution centers in Houston, San Jose, Jacksonville, and Memphis. The accounting, production, and marketing departments have provided the information in the table below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. RTC's supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceedavailable capacity, and meet customer demand.
Assume j= amount shipped from plant i to distribution center j, where i=1 represents Dallas,i=2 represents Atlanta, j=1 represents Houston, and so on.
\table[[\table[[Transportation],[Model]],,,,,],[,,,,,],[Data,,,,,],[,Distribution,,,,],[,Center,,,,],[Plant,Houston,San Jose,Jacksonville,Memphis,Capacity],[Dallas,13.00,15.25,10.99,18.48,1250],[Atlanta,10.75,15.16,9.65,18.50,750],[Demand,175,325,480,950,]]
 According to the Sensitivity report on the model (figure 1), by

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!