Aggie Industrial produces a plastic cylinder rain barrel that is in short supply

Question

Aggie Industrial produces a plastic cylinder rain barrel that is in short supply. Four of Aggie Industrial's customers have already placed orders that together exceed the combined capacity of Aggie Industrial's two plants. After considering, price, production costs, and transportation costs, Aggie Industrial established the following profit per unit for each plant-customer alternative. The plant capacities and customer orders are as follows Use the scenario labeled Aggie Industrial. To solve this problem, you need to incorporate the use of a dummy node? False True

Explanation / Answer

We generally assume that the total supply equals the total demand. If this is not true for a particular problem, dummy sources or destinations can be added to make it true. The text refers to such a problem as a balanced transportation problem. These dummy centers may have zero distribution costs, or costs may be assigned to represent unmet supply or demand.

since sum of supply = 5000+3000 = 8000

is not equal to sum of demand = 3000+4500+3700+2800 = 14000

hence we have to use dummy node

hence it is True

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