An improvement index indicatesA) whether a method other than the stepping-stone should be used.B) whether a method other than the northwest-corner rule should be used.C) how much total cost would increase or decrease if a single unit was reallocated to that cell.D) whether the transportation cost in the upper left-hand corner of a cell is optimal.E) how much total cost would increase or decrease if the largest possible quantity were reallocated to that cell.

Question

An improvement index indicatesA)  whether a method other than the stepping-stone should be used.B)  whether a method other than the northwest-corner rule should be used.C)  how much total cost would increase or decrease if a single unit was reallocated to that cell.D)  whether the transportation cost in the upper left-hand corner of a cell is optimal.E)  how much total cost would increase or decrease if the largest possible quantity were reallocated to that cell.

Deivanai Ganesan · Accepted Answer

Final Answer : C, Explanation :  An improvement index indicates how much total cost would increase or decrease if a single unit was reallocated to that cell. This helps in determining the optimal solution for a transportation problem by identifying the cell with the most potential for cost reduction, which can be achieved by reallocating units to that cell. Thus, the best choice is option C.

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