Question

Coca-Cola’s "Simply Orange" product division ships oranges from three different groves to five processing plants. Typically, how many decision variables would be needed for the core distribution model? Additionally, how many combined supply and demand constraints would be needed?
A. 8 decision variables, 15 supply/demand constraints.
B. 15 decision variables, 8 supply/demand constraints.
C. 15 decision variables, 15 supply/demand constraints.
D. Cannot be determined.

Answer 1

Answer:

B) 15 decision variables, 8 supply/demand constraints.

Explanation:

To determine the number of decision variables all we have to do is multiply the number of groves by the number of processing plants = 3 x 5 = 15. There are 15 possible ways that oranges can go from one specific grove to one specific processing plant.

To determine the supply/demand constraints we add the number of groves (supply) and processing plants (demand) = 3 +5 = 8