For finding an optimum solution in transportation problem, ____________ method is used.a.Simplexb.Big-Mc.MODId.Hungarian

Break Down the Problem

1. Identify the types of methods used for solving transportation problems.
2. Determine which among the given options is known for finding optimum solutions in transportation problems.

Relevant Concepts

• The transportation problem is a type of linear programming problem that focuses on the distribution of goods from multiple suppliers to multiple consumers in the most efficient way possible.
• There are various methods to solve this kind of problem, including:
  • Simplex method
  • Big-M method
  • MODI (Modified Distribution) method
  • Hungarian method

Analysis and Detail

3. Simplex Method: Primarily used for linear programming but not specifically designed for transportation problems.
4. Big-M Method: A technique that can be utilized in linear programming but is not particular to the transportation context.
5. MODI Method: Specifically developed for optimizing the transportation problem; it's commonly used after an initial feasible solution has been found with methods like the North West Corner Rule or Least Cost Method.
6. Hungarian Method: While useful for assignment problems, it's not a standard approach for the transportation problem.

Verify and Summarize

7. Upon examining all the methods listed in the options, the MODI method is specifically pertinent to solving transportation problems.

Final Answer

The correct answer is c. MODI.