Which of the following statements is true when comparing the Microsoft Excel templates of the transportation model to the Microsoft Excel template of the transshipment model?
A) The objective function cell in the transportation model contains the value of one scalar product, while the objective function in the transshipment model has two scalar products.
B) The value of objective function of the transportation model is always greater than the value of the objective function in the transshipment model.
C) The decision maker always seeks to minimize the cost in the transportation model, yet may seek to optimize the cost in the transshipment model.
D) All of the above

Question

Quizplus · Accepted Answer

The transportation model in Excel calculates costs based on a single scalar product of the cost per unit shipped and the number of units shipped between sources and destinations. The transshipment model, however, can involve two scalar products because it includes intermediate points (transshipment points), thus calculating costs for moving goods from sources to transshipment points and then from these points to the final destinations.

Which of the Following Statements Is True When Comparing the Microsoft