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Which of the following is TRUE about the northwest-corner rule? A. All allocations are based on lowest cost B. All demand and s
upply constraints are satisfied, but cost is ignored C. All demand and supply constraints are satisfied while minimizing cost D. All demand and supply constraints are ignored while minimizing cost
1 answer:
Answer:
B. All demand and supply constraints are satisfied, but cost is ignored
Step-by-step explanation:
The northwest-corner rule is a method to compute the initial feasible solution of a transportation problem.
In this method you start to supply the demand with the northwest-corner option without taking into account the related cost. You assign the whole production of the first source to first demand, if that is more than necessary, then you assign the excess to the second demand, and so on; but if is not enough, then you assign the whole production of the next source to unsatisfied demand. Repeat this procedure until all demands are satisfied.
In the picture attached, an example is given. The table shows the unit transportation cost and in the circles the feasible solution obtained with northwest-corner rule.
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