When Formulating Transportation LP Problems,constraints Usually Deal with the

question 39

Multiple Choice

When formulating transportation LP problems,constraints usually deal with the

• A)number of items to be transported.
• B)shipping cost associated with transporting goods.
• C)distance goods are to be transported.
• D)number of origins and destinations.
• E)capacities of origins and requirements of destinations.

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Definitions:

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Effective Interest Rate

The actual cost of borrowing or the actual return on investment, taking into account the effect of compounding interest as opposed to the nominal rate.

Amortization

The gradual reduction of a debt over a period of time by periodic payments of principal and interest sufficient to repay the loan by maturity.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.