Which of the following statements is true of the transportation problem
A) It cannot be applied when shipping routes have differing transportation costs.
B) Its objective is to satisfy all destination demands with a minimum transportation cost.
C) It cannot be applied when there is a variety of shipping routes.
D) Its objective is to locate service facilities.

Question

Quizplus · Accepted Answer

The transportation problem aims to satisfy all destination demands with the minimum transportation cost by determining the optimal allocation of goods from several sources (supply) to several destinations (demand). The problem assumes that transportation costs are known and that the supply and demand are fixed. It can handle any number of sources and destination, and there can be varying transportation costs between them. Therefore, A, C, and D are incorrect.

Which of the Following Statements Is True of the Transportation