CMA Intermediate · Operations Management and Strategic Management · Transportation
Supply from three godowns is 40, 30 and 50 units (total 120). Demand at two markets is 50 and 45 units (total 95). In the balanced problem, how many units will be allocated to the dummy destination in total?
The dummy destination receives 25 units, found by subtracting total demand of 95 from total supply of 120. After adding it, demand becomes 120 and equals supply, and the 25 units represent unshipped stock left at the godowns.
- A95
- B25Correct
- C45
- D120
Explanation
Dummy demand = total supply minus total demand = 120 - 95 = 25 units. Check: 50 + 45 + 25 = 120, equal to supply. These 25 units remain unshipped in the godowns.
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