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Row Minima Methods:
Steps1: The smallest cost in the first row of the transportation table is determined. Let it be C1j . allocate as much as possible amount X1j = min (a1 ,b1) so that either the capacity of origin O1 is exhausted or the requirement at destination D j is satisfied or both .
Steps2:
a. If X1 = a1 so that the availability at origin O1 is completely exhausted cross out the first row of the table and move down to the second row.
b. If X1 = a1 b1 the origin capacity a1 is completely exhausted as well as the requirement at destination Dj is completely satisfied. An arbitrary tie breaking choice is made. Cross out the j column and make the second allocation X1k = 0 in the cell ( 1k ) with C1k being the new minimum cost in the first row. Cross out the first row and move down to the second row.
c. If X1j= bj so that the requirement at destination Dj is satisfied cross out the j column and reconsider the first row with the remaining availability of origin O1.
Step 3: Repeat steps I and 2 for the reduced transportation table until all the requirements are satisfied.
P&L for Masks R Us Ltd: a) $ $ Sales ($8 * 15,000) 120,000 Cost of Goods Sold :
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