The Initial Solution to a Transportation Problem Can Be Generated

question 44

Multiple Choice

The initial solution to a transportation problem can be generated several ways, so long as:

• A) it minimizes cost.
• B) it ignores cost.
• C) all supply and demand conditions are satisfied.
• D) degeneracy does not exist.
• E) all cells are filled.

---

Definitions:

Present Value

The present value of a future amount of money or series of cash flows at a given rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Risk Averse

A descriptor for individuals or entities that prefer to minimize exposure to risk and avoid uncertain outcomes.

Risk and Return

The principle that potential return on investment rises with an increase in risk. Higher risk is associated with the greater probability of higher return and vice versa.