Question

TO FROM	Denver (D)	Eric (E)	Fresno (F)	Griffin (G)	Supply
Atlanta (A)	[5	[3	[6	[7	35
Boston (B)	[4	[8	[1	[9	60
Chicago (C)	[8	[12	[10	[3	35
Demand	30	45	25	30

The table above you should apply the Northwest corner (NWC) rule to obtain a feasible plan. Total cost=_____________________________________________________________________________(show calculation)

Copy your feasible plan obtained by the NWC rule to the table below.

TO FROM	Denver (D)	Eric (E)	Fresno (F)	Griffin (G)	Supply
Atlanta (A)	[5	[3	[6 (10)	[7    (18)	35
Boston (B)	[4 (-6)	[8	[1	[9 (15)	60
Chicago (C)	[8 (-11)	[12 (-5)	[10	[3	35
Demand	30	45	25	30

Determine the improvement indices as follows: (Row A first, then rows B and C)

A-F: 6-1+8-3= 10

A-G:7-3+10-1+8-3= 18

B-D:4-5+3-8= -6

B-G=9-3+10-1=15

C-D=8-5+3-8+1-10=-11

C-E:12-8+1-10=-5

Determine the next transportation table.

TO FROM	Denver (D)	Eric (E)	Fresno (F)	Griffin (G)	Supply
Atlanta (A)	[5	[3	[6	[7	35
Boston (B)	[4	[8	[1	[9	60
Chicago (C)	[8	[12	[10	[3	35
Demand	30	45	25	30	A

Determine the improvement indices as follows: (Row A first, then rows B and C) Total cost=_______________________________________________________________________(show calculation)

Answer 1

** The most northwest cell is taken care of , first. The minimum of supply and demand for that cell is considered and is substracted from both the demand and supply pertaining to the cell. The process is repeated till all the cells carry 0 value. This is the fundamental principle of Northwest transportation problem.