11. The table given below has been taken from the solution procedure of a transportation problem, involving minimisation of cost (in rupees):

(i) Show that the above solution in not optimal.

(ii) Find an optimal solution.

(iii) Does the problem have multiple optimal solutions? Give reasons. If so, find one more optimal solution.
(iv) Comment upon the managerial significance of multiple optimal solutions.
(v) If it is considered necessary to transport 20 units from factory A to stockist Z, what will be the least-cost distribution schedule and the effect on cost?
(vi) If the transport cost from factory A to stockist Z is increased by Rs 5 per unit, will the solution change? If so, find the new solution.

Transcribed Image Text:

Factories A Stockists Y X Z 31 25 8 8 41 B 16 24 C Monthly demand (Units) Monthly capacity (units) 56 41 16 82 77 8 16 24 77 72 102 41