The Northwest-Corner Rule Is Best Used

question 53

Multiple Choice

The northwest-corner rule is best used:

• A) to minimize the total shipping cost from several origins to several destinations.
• B) to calculate whether a feasible solution is also an optimal solution.
• C) to calculate how much to transfer from one shipping route to another.
• D) to generate an initial feasible solution to a transportation problem.
• E) to resolve cases of degeneracy in transportation problems.

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Definitions:

Substitution Effect

The change in the consumption of goods as a result of a change in their relative prices, holding the consumer's utility level constant.

Income

The financial gain received by an individual or business, typically expressed as a total earnings or profit.

Price

The amount of money required to purchase a good or service, or the value that consumers are willing to pay for it.

Apples

Edible fruits with a sweet taste and crisp texture, coming in many varieties and colors like red, green, and yellow.