1) What is the quantity of shipments from Cincinnati to Dallas when using the optimal shipment plan? a. 0 b. 40 c. 60

2) When using the optimal plan, what is the contribution to total costs of shipments from Atlanta to New York? a. 0 b. 3000 c. 3400

3) When using the optimal plan, which source city produces and ships less than its capacity? a. Cincinnati b. Los Angeles c. Atlanta

4) True or False. The requirement constraints for all destination constraints are binding when using the optimal plan.

a. True b. False

5) True or False. Among the source cities, only Atlanta will have shipments to two different destination cities when using the optimal plan. a. True b. False

For questions 6-10, use the sensitivity report information.

6) What is the shadow price on the destination constraint representing requirements at New York? a. 0 b. 40 c. 300 d. None of the above

7) How much would cost increase if the company was required to have a solution value of 1 (i.e. ship 1000 cases) from Cincinnati to Dallas? a. 200 b. 360 c. 500

8) The company is expanding marketing efforts in one market (warehouse city) represented by the destinations in the problem. If the only consideration is transportation costs which city should be the target of the marketing investment? a. Dallas b. Los Angeles c. Chicago

9) Management is able to renegotiate with transport services in the Dallas area so that the cost per unit (1000 cases) of shipments from Cincinnati to Dallas is reduced by $180. How does this change the optimal shipping amount from Cincinnati to Dallas? a. Increases shipments b. Decreases shipments c. No change from the original solution

10) Youve been asked to make a recommendation on capacity expansion in a source city. To which city should investments in capacity be directed? a. Cincinnati b. Denver c. Atlanta

Each plant has a fixed capacity for the plant that sets an upper bound on total shipments that can be made. Each warehouse has a shipments received requirement (lower bound) that reflects expected demand in the market served by the distribution center. The capacities for plants are given in table 2 and the requirements for distribution centers are given in table 3 . Table 2. Plant capacities Table 3 . Warehouse requirements