Question

The supply at three sources is 80, 30, and 40 units respectively while the demand at the four destinations is 30, 20, 25, and 55 units. In solving this transportation problem

• A. a dummy source of capacity 20 units is needed with unit transportation cost one.
• B. a dummy destination of capacity 20 units is needed with unit transportation cost zero.
• C. a dummy source of capacity 20 units is needed with unit transportation cost zero.
• D. a dummy destination of capacity 20 units is needed with unit transportation cost one.

Answer 1

Answer:

B. a dummy destination of capacity 20 units is needed with unit transportation cost zero.

Given: Source supply: 80 + 30 + 40 = 150 units, Destination demand: 30 + 20 + 25 + 55 = 130 units;Since demand at destination is less than the supply by 20 units, a dummy destination of capacity 20 units is needed with unit transportation cost zero.