Question: Consider again the shipping problem from the previous questions. Starting from the initial model, suppose due to a merger with a local partner, shipping costs

Consider again the shipping problem from the previous questions. Starting from the initial model, suppose due to a merger with a local partner, shipping costs from Plant

3

to the East region decrease by $

150 .

How will this affect the company?

.

This cost reduction will increase use of this route and decrease overall shipping costs.

.

This cost reduction will decrease overall shipping costs, but will not affect the shipping plan.

.

This cost reduction will not affect the shipping plan and overall shipping costs.

.

This cost reduction will increase use of this route and increase overall profit.

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