TWO PART QUESTION

The following table shows sources and their supply capacities, destinations and their demand, and transportation cost of shipping one unit from each source to each destination. It also shows a feasible solution. Which of the following statements is correct?

a. Shipping units from DC to Richmond reduces total transportation cost

b. Shipping units from DC to Richmond increases total transportation cost.

c. Shipping units from Atlanta to Richmond reduces total transportation cost by $7 per unit shipped.

d. Shipping units from Atlanta to Richmond increases total transportation cost by $7 per unit shipped

e. Both a and d are correct.

PART 2 Using the graph above:

a. Shipping one unit from DC to Norfolk increases the total transportation cost by $6.

b. Shipping one unit from DC to Norfolk increases the total transportation cost by $4.

c. Shipping one unit from DC to Norfolk reduces the total transportation cost by $2.

d. Shipping one unit from DC to Norfolk reduces the total transportation cost by $4.

e. Shipping one unit from DC to Norfolk increases the total transportation cost by $3.

From To Norfolk Charlotte Richmond Supply Boston $8 50 $5 100 $3 150 Atlanta 200 $4 100 $8 $7 300 DC $3 150 $9 $6 150 Demand 200 300 100 600