The Total Cost of the Optimal Solution to a Transportation

question 35

Multiple Choice

The total cost of the optimal solution to a transportation problem

• A) is calculated by multiplying the total supply (including any dummy values) by the average cost of the cells
• B) cannot be calculated from the information given
• C) can be calculated based only on the entries in the filled cells of the solution
• D) can be calculated from the original northwest corner solution
• E) is found by multiplying the amounts in each cell by the cost for that cell for each row and then subtracting the products of the amounts in each cell times the cost of each cell for the columns

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Definitions:

Subrogation

is a legal doctrine allowing one party (usually an insurer) to step into the shoes of another party to pursue rights or claims against a third party, often to recover amounts paid out in a claim.

Surety

A form of financial guarantee, wherein one party (the surety) agrees to take on the financial obligations of another if they default.

Reimbursement

The act of compensating someone for an expense incurred, often associated with business expenses or insurance claims.

Real Defense

A legitimate legal defense that can be used to void a contract or document, typically in cases of fraud or invalidity.