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CMA Final · Strategic Cost Management · Transportation

A transport planner at a Pune distribution firm has a balanced transportation problem with 3 godowns (origins) and 4 retail hubs (destinations). How many occupied (basic) cells must a non-degenerate basic feasible solution contain?

A non-degenerate basic feasible solution needs m + n - 1 occupied cells, so with 3 origins and 4 destinations it needs 6. Using m + n gives 7, and the table has 12 cells in all, but only 6 are occupied in a basic solution.

  1. A7
  2. B6Correct
  3. C12
  4. D5

Explanation

A non-degenerate basic feasible solution has m + n - 1 occupied cells. With m = 3 and n = 4 this gives 3 + 4 - 1 = 6. The figure 7 comes from wrongly using m + n, and 12 is the total number of cells in the table.

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