Consider the Transportation Problem and Its Initial Solution in the Table

question 47

Multiple Choice

Consider the transportation problem and its initial solution in the table below. What is the improvement index for the empty cell Source 1 - Destination 3? $\begin{array}{|l|r|r|r|r|r|}\hline \text { COSTS } & \text { Dest. 1 } & \text { Dest. 2 } & \text { Dest. 3 } & \text { Dest . 4 } & \text { Supply } \\\hline \text { Source 1 } & 12 & 18 & 9 & 11 & 45 \\\hline \text { Source 2 } & 19 & 7 & 30 & 15 & 145 \\\hline \text { Source 3 } & 8 & 10 & 14 & 16 & 50 \\\hline \text { Demand } & 80 & 30 & 70 & 60 & 240 /240 \\\hline\end{array}$

$\begin{array}{|lrrrrr|}\hline \text { Shipments } & \text { Dest. 1 } & \text { Dest. 2 } & \text { Dest. 3 } & \text { Dest 4 } & \text { Row Total } \\\text { Source 1 } & 45 & 0 & 0 & 0 & 45 \\\text { Source 2 } & 35 & 30 & 70 & 10 & 145 \\\text { Source 3 } & 0 & 0 & 0 & 50 & 50 \\\text { Col. Total } & 80 & 30 & 70 & 60 & 240/240 \\\hline\end{array}$

• A) 0
• B) -14
• C) -23
• D) -70
• E) 115

---

Definitions:

Socialist

Pertaining to a political and economic theory advocating for the means of production, distribution, and exchange to be owned or regulated by the community as a whole.

Political Systems

Political systems refer to the set of formal legal institutions that constitute a government or a state.

Individualistic Systems

Societal frameworks where personal independence and self-reliance are emphasized over collective goals, often leading to a strong sense of competition.

Partial State-Owned Enterprise

A business entity where the government owns a significant share but less than a majority, allowing for both public and private investment.