Use the following table and the information to answer the questions below.
In the following transportation matrix, all cells except 2C have been evaluated and show no improvement. Evaluate that cell.

-What is the reduced cost if we decide to allocate to cell 2C?
A) -2
B) -1
C) 0
D) +1
E) +2

Question

Use the following table and the information to answer the questions below.
In the following transportation matrix, all cells except 2C have been evaluated and show no improvement. Evaluate that cell.
 
-What is the reduced cost if we decide to allocate to cell 2C?
A) -2 
B) -1 
C) 0 
D) +1 
E) +2

Quizplus · Accepted Answer

The reduced cost for allocating to cell 2C is -2. This is because the cost of allocating to cell 2C is 4, and the opportunity cost of not allocating to cell 2C is 6 (the value of the cell in the optimal solution).

Use the Following Table and the Information to Answer the Questions