Consider the Transportation Problem and Its Optimal Solution in the Tables

question 50

Multiple Choice

Consider the transportation problem and its optimal solution in the tables below. What is the value of the objective function? $\begin{array}{|lr|r|r|r|r|}\hline \text { COSTS } & \text { Dest. 1 } & \text { Dest. 2 } & \text { Dest. 3 } & \text { Dest. 4 } & \text { Supply } \\\hline \text { Source 1 } & 12 & 18 & 9 & 11 & 105 \\\hline \text { Source 2 } & 19 & 7 & 30 & 15 & 145 \\\hline \text { Source 3 } & 8 & 10 & 14 & 16 & 50 \\\hline \text { Demand } & 80 & 60 & 70 & 90 & 300/300 \\\hline\end{array}$

$\begin{array}{|lrrrrr|}\hline \text { Shipments } & \text { Dest. 1 } & \text { Dest. 2 } & \text { Dest. 3 } & \text { Dest. 4 } & \text { Row Total } \\\text { Source 1 } & 30 & 0 & 70 & 5 & 105 \\\text { Source 2 } & 0 & 60 & 0 & 85 & 145 \\\text { Source 3 } & 50 & 0 & 0 & 0 & 50 \\\text { Col. Total } & 80 & 60 & 70 & 90 & 300 \backslash 300 \\\hline\end{array}$

• A) 0
• B) $169
• C) 300 units
• D) $2,100
• E) $3,140

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Definitions:

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate, representing the amount due at maturity.

Coupon

In finance, a coupon refers to the interest payment received by a bondholder from the bond issuer at specified intervals.

Yield To Maturity

The total return expected on a bond if it is held until its maturity date, considering all interest payments and capital gains or losses.

Market Price

The present market valuation at which an asset or service can be sold or bought.