Given the Following Feasible Solution Determine If the Problem Is

question 66

Essay

Given the following feasible solution determine if the problem is degenerate and then find the optimal solution and its cost.Assume that capacity for source A is 10 and 30 for source B.Destination A demands 10 units while destination B demands 30 units.Cost of shipping per unit is given as AA ($4),AB ($1),BA ($3),and BB ($2).

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Definitions:

Direct Labor-hours

A measure of the labor time directly involved in the production of goods, used as a base for allocating overhead in some costing systems.

Fixed Overhead

Expenses that remain constant for a certain level of production or period of time, such as rent, salaries, and insurance, not directly tied to the level of production.

Work In Process

Inventory that includes goods partially through the production process but not yet complete.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, utilities, and salaries of managers.