The Total Cost of the Optimal Solution to a Transportation

question 59

Multiple Choice

The total cost of the optimal solution to a transportation problem:

• A) is calculated by multiplying the total supply (including any dummy values) by the average cost of the cells.
• B) cannot be calculated from the information normally included in a transportation problem.
• C) can be calculated based only on the entries in the filled cells of the solution.
• D) can be calculated from the original northwest-corner solution.
• E) is found by multiplying the amounts in each cell by the cost for that cell for each row and then subtracting the products of the amounts in each cell times the cost of each cell for the columns.

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Definitions:

Vertical Merger

A merger between two or more companies that operate at different stages within the production process of the same industry.

Vertical Merger

A merger between two companies operating at different levels within an industry's supply chain.

Subsidiary Corporation

A company that is completely or partly owned and partly or entirely controlled by another company, which is referred to as the parent company.

Domestic Company

A company that operates within the legal boundaries of its home country.