CMA Intermediate · Operations Management and Strategic Management · Transportation
In the final MODI table of a minimisation transportation problem, all unoccupied cells have positive opportunity costs except one cell, which has an opportunity cost of zero. What does this indicate?
The current solution is optimal, and an alternative optimal solution exists. No unoccupied cell has a negative opportunity cost, so cost cannot fall, while the zero-valued cell can enter the basis without changing total cost, producing another solution with equal cost.
- AThe solution is not optimal and must be improved
- BThe problem is unbalanced and needs a dummy
- CThe current solution is optimal and an alternative optimal solution exists with the same total costCorrect
- DThe solution is infeasible
Explanation
No unoccupied cell has a negative opportunity cost, so the solution is optimal. A zero value means bringing that cell into the solution changes total cost by zero, giving an alternative optimal solution. It does not signal non-optimality or imbalance.
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