Consider the transportation problem and its initial solution in the table below.What is the improvement index for the empty cell Source 1 - Destination 3?
A)0
B)-14
C)-23
D)-70
E)115

Question

Consider the transportation problem and its initial solution in the table below.What is the improvement index for the empty cell Source 1 - Destination 3? 
A)0 
B)-14 
C)-23 
D)-70 
E)115

Quizplus · Accepted Answer

The improvement index is calculated as the difference between the minimum non-assigned cost and the cost of the empty cell. In this case, the minimum non-assigned cost is 9, and the cost of the empty cell is 23. Therefore, the improvement index is -14 (9 - 23). Since this is the only negative improvement index, we choose this empty cell to be assigned.

Consider the Transportation Problem and Its Initial Solution in the Table