Consider the transportation problem and its optimal solution in the tables below.The cell Source 3 - Destination 3 is currently empty.What would be the change in the total shipping cost if the largest possible amount were shipped using that route,leaving all the supply and demand conditions unchanged?
A)0
B)fifty units
C)a decrease of $9
D)an increase of $450
E)an increase of $630

Question

Consider the transportation problem and its optimal solution in the tables below.The cell Source 3 - Destination 3 is currently empty.What would be the change in the total shipping cost if the largest possible amount were shipped using that route,leaving all the supply and demand conditions unchanged? 
A)0 
B)fifty units 
C)a decrease of $9 
D)an increase of $450 
E)an increase of $630

Quizplus · Accepted Answer

To find out the change in the total shipping cost, we need to calculate the cost of shipping using the empty cell (Source 3 - Destination 3). The cost of shipping one unit from Source 3 to Destination 3 is $15. If we ship the largest possible amount using this route, it would be 30 units (minimum of supply 70 and demand 30). Therefore, the total cost of shipping using this route would be $15 x 30 = $450.

Since this route is currently not being used, the total shipping cost is the same as the current optimal solution, which is $12,570. Therefore, the change in the total shipping cost would be an increase of $450 (Option D).

Consider the Transportation Problem and Its Optimal Solution in the Tables