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    Northwest

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    wipap72170

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    Northwest

    Uploaded by

    wipap72170
    3 views2 pages

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    3 views2 pages

    Northwest

    Uploaded by

    wipap72170

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    © All Rights Reserved
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    Ssvn sarma

    North-West Corner Rule


    Definition: The North-West Corner Rule is a method adopted to compute
    the initial feasible solution of the transportation problem. The name North-west
    corner is given to this method because the basic variables are selected from
    the extreme left corner.

    The concept of North-West Corner can be well understood through a


    transportation problem given below:

    In the table, three sources A, B and C with the production capacity of 50 units,
    40 units, 60 units of product respectively is given. Every day the demand of
    three retailers D, E, F is to be furnished with at least 20 units, 95 units and 35
    units of product respectively. The transportation costs are also given in the
    matrix.

    The prerequisite condition for solving the transportation problem is that


    demand should be equal to the supply. In case the demand is more than
    supply, then dummy origin is added to the table. The supply of dummy origin
    will be equal to the difference between the total supply and total demand. The
    cost associated with the dummy origin will be zero.

    Similarly, in case the supply is more than the demand, then dummy source is
    created whose demand will be equivalent to the difference between supply
    and demand. Again the cost associated with the dummy source will be zero.

    Once the demand and supply are equal, the following procedure is followed:
    Ssvn sarma

    1. Select the north-west or extreme left corner of the matrix, assign as many
    units as possible to cell AD, within the supply and demand constraints. Such
    as 20 units are assigned to the first cell, that satisfies the demand of
    destination D while the supply is in surplus.
    2. Now move horizontally and assign 30 units to the cell AE. Since 30 units are
    available with the source A, the supply gets fully saturated.
    3. Now move vertically in the matrix and assign 40 units to Cell BE. The supply
    of source B also gets fully saturated.
    4. Again move vertically, and assign 25 units to cell CE, the demand of
    destination E is fulfilled.
    5. Move horizontally in the matrix and assign 35 units to cell CF, both the
    demand and supply of origin and destination gets saturated. Now the total
    cost can be computed.
    The Total cost can be computed by multiplying the units assigned to each cell
    with the concerned transportation cost. Therefore,

    Total Cost = 20*5+ 30*8+ 40*6+ 25*9+ 35*6 = Rs 1015

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