Consider the Transportation Problem and Its Optimal Solution in the Tables

question 38

Multiple Choice

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

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Definitions:

Inventory Control

The process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it.

Physical Distribution

All the activities necessary to move products from producers to customers—inventory control, transportation, warehousing, and materials handling.

Transportation

The shipment of products to buyers.

Warehousing

The design and operation of facilities to receive, store, and ship products.