Question 1
An improvement index indicates
◦ whether the transportation cost in the upper left-hand corner of a cell is optimal.
◦ how much total cost would increase or decrease if the largest possible quantity were reallocated to that cell.
◦ how much total cost would increase or decrease if a single unit was reallocated to that cell.
◦ whether a method other than the stepping-stone should be used.
◦ whether a method other than the northwest-corner rule should be used.
Question 2
A transportation problem has two origins: A can supply 20 units and B can supply 30 units. This problem has two destinations: C requires 25 units and D requires 35 units. Which of the following is true?
◦ The problem will require a dummy supply with a capacity of 10 units.
◦ The problem is unbalanced and cannot be solved by the transportation method.
◦ The problem will require a dummy demand with a capacity of 10 units.
◦ Destinations C and D must each receive 5 units less than they require.
◦ The problem will require a dummy supply with a capacity of 50 units.
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