On This Page

This set of Business Mathematics Multiple Choice Questions & Answers (MCQs) focuses on Transportation Problem

Q1 | Which of the following methods is used to verify the optimality of the current solution of thetransportation problem
  • least cost method
  • vogel’s approximation method
  • modified distribution method
  • all of the above
Q2 | The degeneracy in the transportation problem indicates that
  • dummy allocation(s) needs to be added
  • the problem has no feasible solution
  • the multiple optimal solution exist
  • a & b but not c
Q3 | The dummy source or destination in a transportation problem is added to
  • satisfy rim conditions
  • prevent solution from becoming degenerate
  • ensure that total cost does not exceed a limit
  • none of the above
Q4 | The occurrence of degeneracy while solving a transportation problem means that
  • total supply equals total demand
  • the solution so obtained is not feasible
  • the few allocations become negative
  • none of the above
Q5 | An alternative optimal solution to a minimization transportation problem exists wheneveropportunity cost corresponding to unused route of transportation is:
  • positive & greater than zero
  • positive with at least one equal to zero
  • negative with at least one equal to zero
  • none of the above
Q6 | One disadvantage of using North-West Corner rule to find initial solution to thetransportation problem is that
  • it is complicated to use
  • it does not take into account cost of transportation
  • it leads to a degenerate initial solution
  • all of the above
Q7 | The solution to a transportation problem with ‘m’ rows (supplies) & ‘n’ columns (destination)is feasible if number of positive allocations are
  • m+n
  • m*n
  • m+n-1
  • m+n+1
Q8 | If an opportunity cost value is used for an unused cell to test optimality, it should be
  • equal to zero
  • most negative number
  • most positive number
  • any value
Q9 | The large negative opportunity cost value in an unused cell in a transportation table is chosento improve the current solution because
  • it represents per unit cost reduction
  • it represents per unit cost improvement
  • it ensure no rim requirement violation
  • none of the above
Q10 | The smallest quantity is chosen at the corners of the closed path with negative sign to beassigned at unused cell because
  • it improve the total cost
  • it does not disturb rim conditions
  • it ensure feasible solution
  • all of the above
Q11 | The quantitative approach to decision analysis is a
  • logical approach
  • rational approach
  • scientific approach
  • all of the above
Q12 | The qualitative approach to decision analysis relies on
  • experience
  • judgement
  • intuition
  • all of the above
Q13 | Mathematical model of Linear Programming is important because
  • It helps in converting the verbal description and numerical data into mathematical expression
  • decision makers prefer to work with formal models.
  • it captures the relevant relationship among decision factors.
  • it enables the use of algebraic techniques.
Q14 | In graphical method of linear programming problem if the iOS-cost line coincide with a side of region of basic feasible solutions we get
  • Unique optimum solution
  • unbounded optimum solution
  • no feasible solution
  • Infinite number of optimum solutions
Q15 | If the value of the objective function 𝒛 can be increased or decreased indefinitely, such solution is called
  • Bounded solution
  • Unbounded solution
  • Solution
  • None of the above
Q16 | For the constraint of a linear optimizing function z=x1+x2 given by x1+x2≤1, 3x1+x2≥3 and x1, x2≥0
  • There are two feasible regions
  • There are infinite feasible regions
  • There is no feasible region
  • None of these
Q17 | If the number of available constraints is 3 and the number of parameters to be optimized is 4, then
  • The objective function can be optimized
  • The constraints are short in number
  • The solution is problem oriented
  • None of these
Q18 | Non-negativity condition is an important component of LP model because
  • Variables value should remain under the control of the decision-maker
  • Value of variables make sense & correspond to real-world problems
  • Variables are interrelated in terms of limited resources
  • None of the above
Q19 | Maximization of objective function in an LP model means
  • Value occurs at allowable set of decisions
  • Highest value is chosen among allowable decisions
  • Neither of above
  • Both a & b
Q20 | Which of the following is not a characteristic of the LP model
  • Alternative courses of action
  • An objective function of maximization type
  • Limited amount of resources
  • Non-negativity condition on the value of decision variables.
Q21 | Which of the following statements is true with respect to the optimal solution of an LP problem
  • Every LP problem has an optimal solution
  • Optimal solution of an LP problem always occurs at an extreme point
  • At optimal solution all resources are completely used
  • If an optimal solution exists, there will always be at least one at a corner
Q22 | While plotting constraints on a graph paper, terminal points on both the axes are connected by a straight line because
  • The resources are limited in supply
  • The objective function as a linear function
  • The constraints are linear equations or inequalities
  • All of the above