Companies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E) . It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D and E can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice.
-Which of these is not an element of the objective function?

Question

Quizplus · Accepted Answer

The objective function in a supply chain optimization problem typically involves minimizing or maximizing a certain goal, such as cost. Options A, C, and D represent costs associated with shipping between different points in the supply chain (e.g., from crossdock to plant or from supplier to crossdock), which are relevant to the objective of minimizing total shipping costs. Option B, "600D," does not represent a cost or a direct decision variable affecting costs; instead, it seems to refer to a capacity constraint at crossdock D, which would not be part of the objective function but rather a constraint in the optimization problem.

Companies A, B, and C Supply Components to Three Plants