Exam 24: Transportation Models

A transportation model uses at least 10 sources and 100 destinations.If the ratio of sources to destinations remains constant,does the maximum % of cells used by the optimum solution remain constant? Why or why not?

When using the stepping-stone method,the improvement index for an unused cell equals the shipping cost associated with that cell.

In a minimization problem,a positive improvement index in a cell indicates that:

Consider the transportation problem in the data set and optimal solution below.Verify by hand or by calculator (show your work)the value of the total shipping cost.

A transportation problem has an optimal solution when:

For the data below,construct an initial feasible solution using the northwest-corner rule.

To handle degeneracy,a very small quantity is placed in one of the unused squares.

The intuitive method of generating an initial solution has different results for each problem solver because "intuition" varies from person to person.

The main difference between the intuitive lowest-cost method and the northwest-corner rule is that:

In a transportation problem,degeneracy means that:

Upon completion of the northwest-corner rule,which source-destination cell is guaranteed to be occupied?

Which of the following combinations of sources and destinations would fill no more than 25% of cells with quantities to be shipped for the optimal solution?

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

Consider the transportation problem and its initial solution in the table below.What is the improvement index for the empty cell Source 1 - Destination 3?

What is transportation modeling?

A firm has established a distribution network for the supply of a raw material critical to its manufacturing.Currently there are two origins for this raw material,which must be shipped to three manufacturing plants.The current network has the following characteristics: The firm has identified two potential sites for a third raw material source;these are identified as Candidate A and Candidate B.From A,the costs to ship would be $9 to Plant 1,$10 to Plant 2,and $12 to Plant 3,respectively.From B,these costs would be $11,$14,and $8,respectively.The new source,wherever it is located,will have a capacity of 500 units.Set up this problem as two separate transportation matrices.(Do not solve the problem. )

The transportation model is an excellent tool for minimizing shipping costs among existing facilities,but it is not useful when firms consider new facility locations.

Total demand for a transportation model is 15 while total supply is 20.Which of the following should be included?

For the transportation problem below,construct an initial feasible solution using the intuitive method.

Consider the transportation problem and its optimal solution in the tables below.The cell Source 3 - Destination 3 is currently empty.What would be the change in the total shipping cost if the largest possible amount were shipped using that route,leaving all the supply and demand conditions unchanged?