Question 16 'USC' STANDS FOR UNIT SHIPPING COST AREA X AREA Y AREA Z SUPPLIES 300 300 PLANT A 600 USC: 5 USC: 7 USC: 7 200 300 PLANT B 500 USC: 4 USC: 2 USC: 8 DEMANDS 300 500 300 WHICH OF THE FOLLOWING IS TRUE ABOUT THE SUPPLY ALLOCATION ABOVE? The allocation of supplies is not yet optimal (i.e., the revenue can be increased) O The allocation of supplies is not yet optimal (i.e., the total shipment cost can still be lowered) The allocation of supplies is optimal (i.e., the total transportation cost cannot be lowered anymore)) O The allocation of supplies is optimal (i.e., the revenue is maximized)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Question 16
"USC' STANDS FOR UNIT SHIPPING COST
AREA X
AREA Y
AREA Z
SUPPLIES
300
300
PLANT A
600
USC: 5
USC: 7
USC: 7
200
300
PLANT B
500
USC: 4
USC: 2
USC: 8
DEMANDS
300
500
300
WHICH OF THE FOLLOWING IS TRUE ABOUT THE SUPPLY ALLOCATION ABOVE?
The allocation of supplies is not yet optimal (i.e., the revenue can be increased)
The allocation of supplies is not yet optimal (i.e., the total shipment cost can still be lowered)
O The allocation of supplies is optimal (i.e., the total transportation cost cannot be lowered anymore))
O The allocation of supplies is optimal (i.e., the revenue is maximized)
Transcribed Image Text:Question 16 "USC' STANDS FOR UNIT SHIPPING COST AREA X AREA Y AREA Z SUPPLIES 300 300 PLANT A 600 USC: 5 USC: 7 USC: 7 200 300 PLANT B 500 USC: 4 USC: 2 USC: 8 DEMANDS 300 500 300 WHICH OF THE FOLLOWING IS TRUE ABOUT THE SUPPLY ALLOCATION ABOVE? The allocation of supplies is not yet optimal (i.e., the revenue can be increased) The allocation of supplies is not yet optimal (i.e., the total shipment cost can still be lowered) O The allocation of supplies is optimal (i.e., the total transportation cost cannot be lowered anymore)) O The allocation of supplies is optimal (i.e., the revenue is maximized)
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