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CMA Intermediate · Operations Management and Strategic Management · Transportation

In a transportation problem, a unit cost of Rs 1,000,000 (a very large value, M) is assigned to a particular source-destination route. What is the purpose of this?

The purpose is to prohibit that route. In a minimisation transportation problem, a prohibitively large cost ensures the route is never chosen in the optimal solution, which is how blocked or unavailable routes are represented in the cost matrix.

  1. ATo prohibit the use of that route in the optimal solutionCorrect
  2. BTo make that route compulsory
  3. CTo balance supply and demand
  4. DTo remove degeneracy

Explanation

A very high cost makes the route unattractive in a minimisation problem, so it receives no allocation. This models a prohibited route, for example a road closed for heavy vehicles. It does not force use of the route, which would need a very low cost.

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