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Consider once again the shipping problem of the appliance company in Question 9. Now suppose a new highway reduces shipping costs from Plant 3 to
Consider once again the shipping problem of the appliance company in Question 9. Now suppose a new highway reduces shipping costs from Plant 3 to the North region by 25%. How will this change affect the appliance company?
a. | Due to this cost reduction, the company's shipping plan will change and they will use the shipping route from Plant 3 to the North region. | |
b. | This change in shipping costs will not affect the shipping plan, but will reduce the company's shipping costs. | |
c. | This change in shipping costs will not affect the company since they are not using this shipping route. | |
d. | This change in shipping costs may or may not affect the company. We need additional information to determine the exact effect. |
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