Given the following feasible solution, determine if the problem is degenerate and then find the optimal solution and its cost. Assume that capacity for source A is 10 and 30 for source B

Destination A demands 10 units while destination B demands 30 units. Cost of shipping per unit is given as AA ($4),
AB ($1), BA ($3), and BB ($2).

Destination A Destination B
Source A 10
Source B 30


The number of cells used should be 4 - 1 = 3, however only 2 cells are used. Thus the problem is degenerate. Students may then place a zero in either empty cell and proceed with the stepping-stone method to find an optimal solution of:

Destination A Destination B
Source A 10
Source B 10 20

This solution has a total cost of 10∗3 + 10∗1 + 20∗2 = $80 (compared to $100 from the initial solution).

Business

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