The Roadnet Transport Company expanded its shipping capacity by purchasing 90 trailer trucks from a bankrupt competitor. The company subsequently located 30 of the purchased trucks at each of its shipping warehouses in Charlotte, Memphis, and Louisville. The company makes shipments from each of these warehouses to terminals in St. Louis, Atlanta, and New York. Each truck is capable of making one shipment per week. The terminal managers have indicated their capacity for extra shipments. The manager at St. Louis can accommodate 40 additional trucks per week, the manager at Atlanta can accommodate 60 additional trucks, and the manager at New York can accommodate 50 additional trucks. The company makes the following profit per truckload shipment from each warehouse to each terminal. The profits differ as a result of differences in products shipped, shipping costs, and transport rates. The company wants to know how many trucks to assign to each route (i.e., warehouse to terminal) to maximize profit. Formulate a linear programming model for this problem and solve the model by using Excel and POM-QM.

a. Based on Excels sensitivity report for the Roadnet Transport Company model, which of the following statement is correct regarding capacity of three terminals (St. Louis, Atlanta, New York)?

Group of answer choices

The profit of the company will increase if St. Louis terminal expands its capacity

The profit of the company will increase if Atlanta terminal expands its capacity

The profit of the company will increase if New York terminal expands its capacity

The profit of the company will NOT increase if any of the three terminals expands its capacity

b. Based on Excels sensitivity report for the Roadnet Transport Company model, which of the following statement is FALSE regarding outbound trucks for the three shipping warehouses (Charlotte, Memphis, and Louisville)?

Group of answer choices

If Charlotte warehouse gets an additional outbound truck for shipment, the companys profit would increase by $2100

If Memphis warehouse gets an additional outbound truck for shipment, the companys profit would increase by $1000

If Louisville warehouse gets an additional outbound truck for shipment, the companys profit would increase by $2200

If the company gets a new truck, it should assign the truck to Memphis warehouse