If the Total Supply from the Sources Does Not Equal

question 33

Multiple Choice

If the total supply from the sources does not equal the total demand from the destinations in the transportation problem

• A)and if supply is greater than demand, add a dummy source or factory.
• B)the amount put in a dummy source or destination should make supply and demand equal.
• C)and if demand is greater than supply, add a dummy destination or warehouse.
• D)the amount put in a dummy source or destination can be considered a slack variable.

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Definitions:

Price Variances

A measurement of the difference between the actual cost of a good or service and its expected cost.

Quantity Variances

Quantity variances are differences between the expected and actual quantities of inputs (materials, labor) used in the production process or during a specific period.

Direct Labor

The wages or salaries paid to employees who are directly involved in the production process of goods or services.

Fixed Budget

A budget that stays the same regardless of changes in activity levels, output, or sales.