Using the Transportation Simplex Method, the Optimal Solution to the Transportation

question 20

Multiple Choice

Using the transportation simplex method, the optimal solution to the transportation problem has been found when

• A) there is a shipment in every cell.
• B) more than one stepping-stone path is available.
• C) there is a tie for outgoing cell.
• D) the net evaluation index for each unoccupied cell is ≥ 0.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Excise Tax

A tax levied on specific goods or commodities sold within a country, such as alcohol and cigarettes.

Price Elasticity

A parameter for gauging the response of demand to price variations of a product.