ITPEC IP October 2025 Question 68
ITPEC IP October 2025 — Question 68 of 100
The minimum shipment cost is 11,000 dollars — allocate the limited Warehouse B stock where its saving over Warehouse A is greatest.
B saves 200 dollars per item for Store C (400 − 200) but only 100 for D (200 − 100), so send all 15 B items to C. C then receives its remaining 5 from A, and A's other 30 go to D. Cost: 15 × 200 + 5 × 400 + 30 × 200 = 3,000 + 2,000 + 6,000 = 11,000.
Answer (c)
Why not others: (a) and (b) are below the feasible minimum; (d) results from a less efficient allocation, such as sending B stock to D before satisfying C.
Key rule: In a transportation allocation, compare relative savings, not just the lowest absolute route cost, while satisfying every supply and demand constraint.
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