Transportation Model

The Transportation Model
A special class of the LP problem Deals with the situation in which commodities are shipped from sources to destinations Objective is to determine the amounts shipped from each source to each destination Need to minimise the total shipping cost Need to satisfy both the supply limits and the demand requirements

Represent each of the m sources and each of the n destinations by a node Link the sources to the destinations with directed edges (arcs) This represents the routes between sources and destinations Arc (i, j) joins source i to destination j

Arc (i, j) and carries two pieces of information The transportation cost per unit, cij The amount shipped, xij The amount of supply at source i is ai The amount of demand at destination j is bj The objective is to determine the unknowns, xij Need to minimise total transportation cost Need to meet all supply and demand requirements

sources
a1
Units of supply
1 2 m
c1 1 : x1 1
destinations
1 2 n
b1 b2 bn
Units of demand
a2 am
cm n : xm n

AUS Auto has three plants in Sydney, Perth and Melbourne They also have two major distribution centers in Brisbane and Adelaide The capacities of the three plants during the next quarter are 1000, 1500 and 1200 cars The quarterly demand at the two distribution centers are 2300 and 1400 cars

The distances (in km) between the plants and distribution centers are (say) Brisbane Adelaide Sydney Perth Melbourne 1000 1250 1275 2690 1350 850

The company that transports the cars charges 8 cents per km per car The transportation cost per car on each route (to the nearest dollar) is then Brisbane Adelaide (1) Sydney (1) Perth (2) Melbourne (3) $80 $100 $102 (2) $215 $108 $68
The LP model is
s. t. x11 + x12 x21 + x22 x31 + x32
minimise z = 80x11 + 215x12 + 100x21 + 108x22 + 102x31 + 68x32 = 1000 (Sydney) = 1500 (Perth) = 1200 (Melbourne)
x11 + x21 + x31 = 2300 (Brisbane) x12 + x22 + x32 = 1400 (Adelaide) xij 0, i = 1, 2, 3, j = 1, 2

The constraints are equations because Total supply = 100 + 1500 + 1200 = 3700 Total demand is 2300 + 1400 = 3700 Can solve this using the simplex method ! The special structure of the constraints allow us to solve the problem in a more convenient way

The optimal solution is 1000 1500 1200 Sydney Perth 1000 1300 200 Melbourne 1200 Brisbane Adelaide 2300 1400
Total transportation cost is $313,200

Solve the problem using a transportation tableau Brisbane 80 x11 x21 x31 100 102 Adelaide Supply 215 x12 x22 x32 1400 1000 108 1500 68 1200
Sydney Perth Melbourne
Demand 2300

In the Aus Auto model, suppose that the Perth plant capacity is 1300 cars (instead of 1500) This means that the total supply (3500) is less than the total demand (3700) Part of the demand at Brisbane and Adelaide may not be filled

As demand exceeds supply, add a dummy source with a capacity of 200=3700-3500
This balances the transportation model
The cij from the dummy plant to the destinations is 0 because the plant does not exist The cij from the dummy source to the destinations may assume positive values as well
e.g., to ensure that Adelaide will receive all its demand, we assign a high cij (penalty) to the entry from the dummy source to Adelaide
The optimum solution of the balanced model is

Brisbane Sydney Perth Melbourne Dummy Demand 2300 80 1000 100 1300 102 1200 0 200 1400 0 68 108 Adelaide 215 Supply 1000 1300 1200 200
The dummy plant ships 200 cars to Adelaide, which means that it will be 200 cars short !

Assume that the demand at Brisbane is only 1900 cars (not 2300) Now supply exceeds the demand In this case, we need to add a dummy distribution center to receive the surplus supply Again, the cijs to the dummy distribution center are 0, unless we wish to impose other conditions
e.g., we can require a factory to ship out completely by assigning a high cij from the designated factory to the dummy destination
The new model and its optimal solution is

Brisbane Sydney Perth Melbourne Demand 1900 80 1000 100 900 102 1200 1400 400 200 68 108 400 0 0 Adelaide 215 Dummy 0 Supply 1000 1500 1200
The Perth plant will have a surplus of 400 cars
Non-Traditional Transportation Models

The application of the transportation model is not limited to transporting commodities between geographical sources and destinations A company C manufactures product P Demand occurs during March to June The company estimates the demand to be
100(March), 200(April), 180(May), 300(June)
The companys production capacity varies It estimates that it can produce

50 (March), 180(April), 280(May), 270(June)

The production capacity and demand for the different months do not match A current months demand may be satisfied in one of three ways
1. Current months production cost per unit is $40 2. Surplus production in an earlier month incurs a holding cost of $0.50/unit/month 3. Surplus production in a later month incurs a penalty cost of $2/unit/month
Determine the optimal production schedule

Notice the following parallels between the elements of the production-inventory problem and the transportation model:
Transportation 1. Source i 2. Destination j 3. Supply amount at source i 4. Demand at destination j 5. Unit transportation cost from source i to destination j Production-inventory 1. Production period i 2. Demand period j 3. Production capacity of period i 4. Demand for period j 5. Unit cost (production+inventory +penalty) in period i for period j

The unit transportation cost from period i to period j is computed as cij = e.g. c11 = $40.00 c24 = $40.00 + ($0.50 + $0.50) = $41.00 c42 = $40.00 + ($2.00 + $2.00) = $44.00
Production cost in i, i =j Production cost in i + holding cost from i to j, i < j Production cost in i + penalty cost from i to j, i > j

The resulting transportation model is
1 1 2 3 4 Demand $40 $42 $44 $46 100 2 $40.5 $40 $42 $44 200 3 $41 $40.5 $40 $42 180 4 $41.5 $41 $40.5 $40 300 Capacity 50 180 280 270

Supply period
50 180 supply 280 270
1 2 3 3
50 50 130 70 180 30 270
Demand period
1 2 4 4
100 200
demand
180 300

A saw mill prepares different types of wood that range from soft pine to hard oak according to a weekly schedule Depending on the type of wood being milled, the demand for sharp blades varies from day to day according to the following 1-week (7-day) data: Day Demand (blades) Mon Tues Wed Thur Fri 24 12 14 20 18 Sat Sun 14 22

The mill can satisfy the daily demand in the following manner: 1. Buy new blades at the cost of $12 a blade 2. Use an overnight sharpening service at the cost of $6 a blade, or a slow 2-day service at the cost of $3 a blade.

The situation can be transportation model represented as a
The 7 destinations represent the 7 days of the week The 8 sources are defined as follows: Source 1: buying new blades, Sources 2 to 8: the 7 days of the week

The amount of supply for each of these sources equals the number of used blades at the end of the associated day For example, source 2 (i.e., Monday) will have a supply of used blades equal to the demand for Monday The unit transportation cost for the model could be $12, $6, or $3, depending on whether the blade is supplied from new blades, overnight sharpening, or 2-day sharpening

Notice that the overnight service means that used blades sent at the end of day i will be in use at the start of day i + 1 or day i + 2. The 2-day service means that used blades sent at the end of day i will be in use at the start of day i + 3 or any day thereafter The disposal column is a dummy destination that receives the blades left unsharpened at the end of a day

1 Mo 1 New 2 Mo 3 Tu 4 We 5 Th 6 Fr 7 Sa 8 Su 2 Tu 3 We 4 Th 5 Fr 6 Sa 7 Su 8 Dis 124 24 12 14 20 18 14 22 $12 $12 $12 $12 $12 $12 $12 $0 98 24 2 M $6 $6 $3 $3 $3 $3 $0 10 8 6 M $6 $6 $3 $3 $3 $0 M 6 6 M $6 $6 $3 $3 $0 M M 14 M M M M $6 $6 $3 $0 12 8 M $6 $6 $0 M M M M 14 4 M M M M M M $6 $0 14 M M M M M M M $0 22 24 12 14 20 18 14 22 124

Period Mo Tu We Th Fr Sa Su New 24(Mo) 2(Tu) 0 0 0 0 0 SharpeningService Overnight 2-Day 10(Tu)+8(W) 6(We) 14(Th) 12(Fr) 14(Sa) 14(Su) 0 6(Th) 6(Fr) 0 8(Su) 0 0 0 Disp 0 0 0 0 4 0 22

At the start of Monday, the company buys 24 new blades At the end of Mon, they will have 24 used blades
18 sent to overnight service, 6 to 2-day service
Of the 18 overnight blades,

10 will be used on Tuesday, and 8 on Wednesday
The six 2-day blades will be used on Thursday etc. The disposal column shows the # of used blades that will be left unsharpened at the end of a given day
The Transportation Algorithm

The algorithm follows the exact steps of the simplex method instead of using the regular simplex tableau, we take advantage of the special structure of the transportation model to present the algorithm in a more convenient form We use the following numeric example to present the details of the algorithm

A transport company ships truckloads of grain from three silos to four mills
The supply and demand is in #truckloads The cijs (top-right corner of each box) are in $00s
Silo 1 Silo 2 Silo 3 Demand Mill 1 10 x11 12 x21 4 x31 5 x32 15 x22 14 x33 15 Mill 2 2 x12 7 x23 16 x34 15 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 15 25 10

The purpose of the model is to determine the minimum cost shipping schedule between the silos and the mills This is equivalent to determining the quantity xij shipped from silo i to mill j (i = 1, 2, 3; j = 1, 2, 3, 4)

The steps of the transportation algorithm are exact parallels of the simplex algorithm 1. Determine a starting basic feasible solution 2. If the optimality condition is satisfied, stop. Otherwise, use the optimality condition of the simplex method to determine the entering variable from amongst all the non-basic variables Go to step 3 3. Use the feasibility condition of the simplex method to determine the leaving variable from among all the current basic variables and find the new basic solution Return to step 2

The special structure of the transportation problem allows securing a non-artificial starting basic solution using one of three methods:
1. Northwest-corner method 2. Least-cost method 3. Vogel approximation method
The difference the methods is the quality of the starting basic solution they produce In general, 3. yields the best and 1. yields the worst However 1. involves the least computations.
The North-West-Corner Method

Allocate as much as possible to the variable, xij, in the northwest corner of the (remaining) tableau Step 2. Adjust the associated amounts of supply and demand by subtracting the allocated amount Step 3. If all units have been allocated stop; else ifthe supply in row i is satisfied AND the demand in column j is satisfied, remove EITHER row i OR row j (but not BOTH) else if the supply in row i is satisfied remove row i else if the demand in column j is satisfied remove column j Go to Step 1. Step 1.

Update variable x11 (NW corner)

Allocate as much as possible

Silo 1 Silo 2 Silo 3 Demand Mill 1 10 5 12 x21 4 x31 5 x32 15 x22 14 x33 15 Mill 2 2 x12 7 x23 16 x34 15 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 15 25 10
Update supply and demand

Remove column 1



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 5 12 x21 4 x31 0 x32 15 x22 14 x33 15 Mill 2 2 10 7 x23 16 x34 15 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 10 25 10

Remove row 1



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 5 12 x21 4 x31 0 x32 5 5 14 x33 15 Mill 2 2 10 7 x23 16 x34 15 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 0 25 10

Remove column 2



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 5 12 x21 4 x31 0 x32 0 5 14 x33 15 Mill 2 2 10 7 15 16 x34 15 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 0 20 10

Remove column 3



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 5 12 x21 4 x31 0 x32 0 5 14 x33 0 Mill 2 2 10 7 15 16 x34 15 Mill 3 20 x13 9 5 18 Mill 4 11 x14 20 Supply 0 5 10

Remove row 2



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 5 12 x21 4 x31 0 x32 0 5 14 x33 0 Mill 2 2 10 7 15 16 10 10 Mill 3 20 x13 9 5 18 Mill 4 11 x14 20 Supply 0 0 10

Silo 1 Silo 2 Silo 3 Demand Mill 1 10 5 12 x21 4 x31 0 x32 0 5 14 x33 0 Mill 2 2 10 7 15 16 10 0 Mill 3 20 x13 9 5 18 Mill 4 11 x14 20 Supply 0 0 0
All units have been allocated; stop.

Silo 1 Silo 2 Silo 3 Mill 1 10 5 12 5 4 14 Mill 2 2 10 7 15 16 10 15 9 5 18 20 Mill 3 20 Mill 4 11 Supply 15 25 10
15 15 5 Demand The starting basic solution is given as
x11 = 5, x12 = 10, x22 = 5, x23 = 15, x24 = 5, x34 = 10 The associated cost of the schedule is z = 5x10 + 10x2 + 5x7 + 15x9 + 5x20 +10x18 = $520
The Least-Cost Method

Concentrate on the cheapest cells Start by assigning as much as possible to the cell with the smallest unit cost (ties are broken arbitrarily) We then adjust the amounts of supply and demand and remove the satisfied row or column accordingly If both a row and a column are satisfied simultaneously, only one is removed Repeat until all units have been allocated

Update variable x12 (cheapest = 2)


Silo 1 Silo 2 Silo 3 Demand Mill 1 10 x11 12 x21 4 x31 5 x32 15 x22 14 x33 15 Mill 2 2 15 7 x23 16 x34 15 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 15 25 10

Arbitrarily remove column 2



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 x11 12 x21 4 5 5 x32 0 x22 14 x33 15 Mill 2 2 15 7 x23 16 x34 15 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 0 25 10

Remove column 1



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 15 Mill 2 2 15 7 15 16 x34 15 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 0 25 5

Remove column 3



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 Mill 2 2 15 7 15 16 x34 15 Mill 3 20 x13 9 x24 18 0 20 Mill 4 11 Supply 0 10 5

Remove row 1



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 Mill 2 2 15 7 15 16 5 15 Mill 3 20 x13 9 x24 18 0 20 Mill 4 11 Supply 0 10 5

Remove row 3



Silo 1 Silo 2 Silo 3 Demand Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 Mill 2 2 15 7 15 16 5 10 Mill 3 20 x13 9 10 18 0 20 Mill 4 11 Supply 0 10 0

Silo 1 Silo 2 Silo 3 Demand Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 Mill 2 2 15 7 15 16 5 0 Mill 3 20 x13 9 10 18 0 20 Mill 4 11 Supply 0 0 0

Silo 1 Silo 2 Silo 3 Mill 1 10 Mill 2 2 15 12 4 5 7 15 14 16 5 0 9 10 18 Mill 3 20 0 20 Mill 4 11 Supply 0 0 0
x12 = 15, x14 = 0, x23 = 15, x24 = 10, x31 = 5, x34 = 5 The associated cost of the schedule is z = 15x2 + 0x11 + 15x9 + 10x20 + 5x4 +5x18 = $475
$45 less than the NWCM
The Vogel Approximation Method

Step 1. For each row(column) with supply(demand) > 0 determine a penalty by subtracting the smallest element in the row(column) from the next smallest in the same row(column) Step 2. Identify the row or column with the largest penalty. Break ties arbitrarily. Allocate as much as possible to the variable with the least unit cost in the selected row or column. Adjust the supply and demand, and remove the satisfied row or column. If a row and a column are satisfied simultaneously, only one of the two is removed

Step 3. (a) (b) If all units have been allocated, stop. If one row(column) with positive supply (demand) remains, determine the basic variables in the row(column) by the least-cost method. Stop If all the rows and columns have (remaining) zero supply and demand, determine the zero basic variables by the least-cost method. Stop. Otherwise, go to step 1.
(c)
(d)

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 x31 5 10 4 =6 x32 15 72 =5 x22 14 x33 15 16 9 =7 Mill 2 2 x12 7 x23 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 15 25 10 Penalty 10 2 = 8 97=2 14 4 = 10
Demand Penalty
Update variable x31 (row 3 has highest penalty and x31 has lowest cost in row 3)

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 x31 5 10 4 =6 x32 15 72 =5 x22 14 x33 15 16 9 =7 Mill 2 2 x12 7 x23 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 15 25 10 Penalty 10 2 = 8 97=2 14 4 = 10
Demand Penalty

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 5 10 4 =6 x32 15 72 =5 x22 14 x33 15 16 9 =7 Mill 2 2 x12 7 x23 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 15 25 10 Penalty 10 2 = 8 97=2 14 4 = 10
Demand Penalty

Demand Penalty
Remove column 1

Demand Penalty
Recalculate penalties

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 15 72 =5 x22 14 x33 15 16 9 =7 Mill 2 2 x12 7 x23 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 15 25 5 Penalty 11 2 = 9 97=2 16 14 = 2
Demand Penalty

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 15 72 =5 x22 14 x33 15 16 9 =7 Mill 2 2 x12 7 x23 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 15 25 5 Penalty 11 2 = 9 97=2 16 14 = 2
Demand Penalty

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 15 72 =5 x22 14 x33 15 16 9 =7 Mill 2 2 15 7 x23 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 15 25 5 Penalty 11 2 = 9 97=2 16 14 = 2
Demand Penalty

Demand Penalty
Arbitrarily remove column 2

Demand Penalty
Re-calculate penalties

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 15 16 9 =7 Mill 2 2 15 7 x23 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 0 25 5 Penalty 20 11 = 9 20 9 = 11 18 16 = 2
Demand Penalty

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 15 16 9 =7 Mill 2 2 15 7 x23 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 0 25 5 Penalty 20 11 = 9 20 9 = 11 18 16 = 2
Demand Penalty

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 15 16 9 =7 Mill 2 2 15 7 15 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 0 25 5 Penalty 20 11 = 9 20 9 = 11 18 16 = 2
Demand Penalty

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 16 9 =7 Mill 2 2 15 7 15 16 x34 15 18 11 =7 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 0 10 5 Penalty 20 11 = 9 20 9 = 11 18 16 = 2
Demand Penalty
Remove column 2

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 Mill 2 2 15 7 15 16 x34 15 Mill 3 20 x13 9 x24 18 Mill 4 11 x14 20 Supply 0 10 5
Demand
Only one column left which has positive supply of 15 units so apply least-cost method

Demand

Demand

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 Mill 2 2 15 7 15 16 x34 15 Mill 3 20 x13 9 x24 18 0 20 Mill 4 11 Supply 0 10 5
Demand

Demand
Remove row 1

Demand

Demand

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 Mill 2 2 15 7 15 16 5 15 Mill 3 20 x13 9 x24 18 0 20 Mill 4 11 Supply 0 10 5
Demand

Demand
Remove row 3

Demand

Demand

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 Mill 2 2 15 7 15 16 5 10 Mill 3 20 x13 9 10 18 0 20 Mill 4 11 Supply 0 10 0
Demand

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 0 x32 0 x22 14 x33 0 Mill 2 2 15 7 15 16 5 0 Mill 3 20 x13 9 10 18 0 20 Mill 4 11 Supply 0 0 0
Demand

Silo 1 Silo 2 Silo 3 Mill 1 10 x11 12 x21 4 5 x32 x22 14 x33 Mill 2 2 15 7 15 16 5 0 Mill 3 20 x13 9 10 18 0 20 Mill 4 11 Supply 0 0 0
x12 = 15, x14 = 0, x23 = 15, x24 = 10, x31 = 5, x34 = 5 The associated cost of the schedule is z = 15x2 + 0x11 + 15x9 + 10x20 + 5x4 +5x18 = $475 Same as L-CM!

Transportation Model

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Transportation Model

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The Transportation Model

The Transportation Model

The Transportation Model

The Transportation Model

The Transportation Model

The Transportation Model

The Transportation Model

The Transportation Model

The Transportation Model

The Transportation Model

Total transportation cost is $313,200

The Transportation Model

Sydney Perth Melbourne

The Transportation Model

The Transportation Model

The optimum solution of the balanced model is

The Transportation Model

The Transportation Model

The new model and its optimal solution is

The Transportation Model

The Perth plant will have a surplus of 400 cars

Non-Traditional Transportation Models

The companys production capacity varies It estimates that it can produce

Non-Traditional Transportation Models

Determine the optimal production schedule

Non-Traditional Transportation Models

Non-Traditional Transportation Models

Non-Traditional Transportation Models

Non-Traditional Transportation Models

50 180 supply 280 270

50 50 130 70 180 30 270

Non-Traditional Transportation Models

Non-Traditional Transportation Models

Non-Traditional Transportation Models

Non-Traditional Transportation Models

Non-Traditional Transportation Models

Non-Traditional Transportation Models

Non-Traditional Transportation Models

Non-Traditional Transportation Models

Of the 18 overnight blades,

The Transportation Algorithm

The Transportation Algorithm

The Transportation Algorithm

The Transportation Algorithm

The Transportation Algorithm

The North-West-Corner Method

The North-West-Corner Method

Update variable x11 (NW corner)

The North-West-Corner Method

Allocate as much as possible

The North-West-Corner Method

Update supply and demand

The North-West-Corner Method

The North-West-Corner Method

Update variable x12 (NW corner)

The North-West-Corner Method

Allocate as much as possible

The North-West-Corner Method

Update supply and demand

The North-West-Corner Method

The North-West-Corner Method

Update variable x22 (NW corner)

The North-West-Corner Method

Allocate as much as possible