The Following Transportation Table Shows the Cost of Shipping One

question 3

Multiple Choice

The following transportation table shows the cost of shipping one unit from each source to each destination in the upper right-hand corner of each cell, as well as the supply capacities and demand requirements: Use MS Excel Solver (or other appropriate software) to find the optimal solution. The minimum decrease in the unit shipping cost from St. Louis to New York that would change the optimal solution is:

• A) 0.95
• B) 1.00
• C) 1.01
• D) 1.50

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Definitions:

Complementary Goods

Products or services that are used together, where the increase in demand for one leads to an increase in demand for the other.

Natural Gas

A fossil fuel composed mostly of methane, used as a source of energy for heating, cooking, and electricity generation, as well as a feedstock for chemical manufacturing.

Complementary Goods

Goods or services that are frequently utilized in conjunction with each other, leading to a scenario where the desire for one boosts the desire for the other.

Substitute Goods

Products or services that can be used in place of each other because they satisfy similar customer needs or desires.