Transportation cost, Operation Management

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a. Assign any value arbitrarily to a row or column variable u or vj . generally a value 0 zero (zero) is assigned to the first row i, e, u = 0.

b.Consider every occupied cell in the first row individually an assign the column value vj ( when the occupied cell is in the ( when the occupied cell is in the column of the row)which is such that the sum of the row and the column values is equal to the unit cost value in the occupied cell. With the help of these values consider other occupied cells one by one and determine the appropriate values of taking in each case ui + vj = cij. Thus if ui is the row value of the row and v is the column value of the column and cij is the unit cost of the cell in the row and column then the row and column values are obtained using the followings equation.

Ui + vj = cij


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