The occurrence of degeneracy while solving a transportation problem means that

Correct interpretation: Degeneracy in a transportation problem occurs when the number of basic allocations (basic variables) is less than m + n - 1. Equivalently, a basic feasible solution is degenerate if one or more basic variables have value zero.

• Identification: After obtaining an initial basic feasible solution, count the occupied cells (basic allocations). If the count is less than m + n - 1, the solution is degenerate.

• Implications: Degeneracy does not make a solution infeasible. However, it can complicate optimality tests (stepping-stone or MODI) and may lead to multiple optimal solutions or require special care to form loops.

• Resolution: Introduce additional zero allocations (or a very small ε) in appropriate empty cells so that the number of basic variables becomes m + n - 1. This restores a proper basis and allows the usual optimality procedures to proceed.

Why the given answer choices are incorrect:

• The statement 'total supply equals total demand' refers to whether the problem is balanced, not to degeneracy.

• The statement 'total supply does not equal total demand' refers to an unbalanced problem, which is unrelated to degeneracy.

• The statement 'the solution so obtained is not feasible' is incorrect because a degenerate solution is still a feasible basic solution; degeneracy is about the number and values of basic variables, not feasibility.

Therefore, among the provided choices, the statement 'none of these' is the best choice because none of the other options define degeneracy correctly.

Quick practical tip: When you detect degeneracy, add zero-valued basic allocations to appropriate empty cells (or use an infinitesimal ε) until you have m + n - 1 basic variables, then continue with the optimality test.