Statistics

"To find the optimal (cost minimizing) distribution plan, we can use the transportation algorithm, also known as the Northwest Corner Method, to allocate supplies to demands. The algorithm starts by selecting the cell in the northwest corner of the matrix and assigning as much supply as possible to the corresponding demand. Then, it moves to the next cell to the right or down, repeating the process until all supplies and demands are satisfied.

Here are the steps to apply the algorithm:

Step 1: Start by allocating as much as possible to the first demand (D1) from the first supply (S1). The amount allocated will be the smaller of the supply and demand values. In this case, we can allocate 60 units from S1 to D1.

D1 D2 D3 Supply

S1 60 60

S2 50 50

S3 20 30 50

Dem 100 100 50 "