A transportation problem has improvement indices of 5,4,0,and -3.Which of the following is always true?
A)The transportation model is at its ideal solution.
B)The transportation model is at a feasible solution.
C)The total cost saved by changing one unit on the route with an improvement index of 5 would be $5.
D)The transportation matrix has four empty squares.
E)Both B and D

Question

Quizplus · Accepted Answer

The improvement indices indicate that there are still opportunities for improvement in the transportation model. Thus, it is not at its ideal solution (A). However, since there are no negative improvement indices, this suggests that the current solution is feasible (B). The fact that there are empty squares in the transportation matrix cannot be inferred from just the improvement indices (D). Finally, while the improvement index indicates the potential cost savings for a given change, it does not necessarily mean that the savings will be exactly equal to the improvement index (C). Therefore, the best choice is E, since it accounts for the feasible solution and the unknown state of the transportation matrix.

A Transportation Problem Has Improvement Indices of 5,4,0,and -3