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As mentioned previously the MODI method is an efficient method of testing the optimality of a transportation solution. It may be recalled that in the application of the stepping stone method each of the empty cells is evaluated for the opportunity cost by drawing a closed loop. In situation where a large number of sources and destination are involved this would be a very time consuming and intricate exercise. The MODI method avoids this kind of extensive scanning and reduces the number of steps required in the evaluation of the empty cells. This methods gives a straightforward computational scheme whereby we can determine the opportunity cost of each of the empty cells.
Step i) : Add to the transportation table a column on the EHS titled u and a row in the bottom of it labelled vj.
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At any stage if there is a tie in the minimum cost so that two or more routes have the same least cost of transportation then conceptually either of them may be selected. However a
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