Step 1 allocate as much as possible to the selected

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Step 1:Allocate as much as possible to the selected cell, and adjust the associatedamounts of supply and demand by subtracting the allocated amount.Step 2:Cross out the row or column with zero supply or demand to indicate that nofurther assignments can be made in that row or column. If both a row and a columnnet to zero simultaneously, cross out one only, and leave a zero supply (demand) inthe uncrossed-out row (column).
Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited.57Step 3:If exactly one row or column is left uncrossed out, stop. Otherwise, move to thecell to the right if a column has just been crossed out or below if a row has beencrossed out. Go to step 1.Applying this method to our problem givesThe arrows show the order in which the allocated amounts are generated. The starting basicsolution is?11= 5, ?12= 10, ?22= 5, ?23= 15, ?24= 5, ?34= 10.The associated cost of theschedule is? = 5 × 10 + 10 × 2 + 5 × 7 + 15 × 9 + 5 × 20 + 10 × 18 = $520.B. Least-Cost MethodThe least-cost method finds a better starting solution by targeting the cheapest routes. Itassigns as much as possible to the cell with the smallest unit cost (ties are broken arbitrarily).Next, the satisfied row or column is crossed out and the amounts of supply and demand areadjusted accordingly. If both a row and a column are satisfied simultaneously, only one iscrossed out, the same as in the northwest-corner method. Next, select the uncrossed-out cellwith the smallest unit cost and repeat the process until exactly one row or column is leftuncrossed out.
Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited.58Cell (1, 2) has the least unit cost in the tableau (= $2). The most that can be shippedthrough (1, 2) is?12= 15truckloads, which happens to satisfy both row 1 and column2 simultaneously. We arbitrarily cross out column 2 and adjust the supply in row 1 to 0.Cell (3, 1) has the smallest uncrossed-out unit cost (= $4). Assign?31= 5, and cross outcolumn 1 because it is satisfied, and adjust the demand of row 3 to10 − 5 = 5truckloads.Continuing in the same manner, we successively assign 15 truckloads to cell (2, 3), 0truckloads to cell (1, 4), 5 truckloads to cell (3, 4), and 10 truckloads to cell (2, 4)(Please verify these!).The starting solution (consisting of six basic variables) is?

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