Given the following feasible solution, determine if the problem is degenerate and then find the optimal solution and its cost. Assume that capacity for source A is 10 and 30 for source B
Destination A demands 10 units while destination B demands 30 units. Cost of shipping per unit is given as AA ($4),
AB ($1), BA ($3), and BB ($2).
Destination A Destination B
Source A 10
Source B 30
The number of cells used should be 4 - 1 = 3, however only 2 cells are used. Thus the problem is degenerate. Students may then place a zero in either empty cell and proceed with the stepping-stone method to find an optimal solution of:
Destination A Destination B
Source A 10
Source B 10 20
This solution has a total cost of 10∗3 + 10∗1 + 20∗2 = $80 (compared to $100 from the initial solution).
You might also like to view...
Given the returns of two stocks J and K in the table below over the next 4 years
Find the expected return and standard deviation of holding a portfolio of 40% of stock J and 60% in stock K over the next 4 years: Stock J Stock K 2010 10% 9% 2011 12% 8% 2012 13% 10% 2013 15% 11% A) 10.7% and 1.34% B) 10.6% and 1.79% C) 10.6% and 1.16% D) 14.3% and 2.02%
Brand recognition is a part of:
A) human capital. B) structural capital. C) customer capital. D) All of the above