Question: Use the table below to answer the following question ( s ) . The Riviera Transport Company ( RTC ) produces car accessories at two
Use the table below to answer the following questions
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. RTCs 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 exceed available capacity, and meet customer demand.
Assume Xij amount shipped from plant i to distribution center j where i represents Dallas, i represents Atlanta, j represents Houston, and so on
Transportation Model
Data
Distribution Center
Plant Houston San Jose Jacksonville Memphis Capacity
Dallas
Atlanta
Demand
Answer the following questions using a linear optimization model.
According to the Sensitivity Report, which of the following is true if the capacity at Atlanta is increased by units?
Question options:
the total cost per unit will reduce by $ to Memphis
the shadow price at Atlanta will increase to $
the total cost at Atlanta increases by $
the total cost can be reduced by $ per unit
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