Select the north west corner i.e. upper left corner of the
transportation matrix.In the above given table cell(I,I) is towards the north
west.Here corresponding supply is 25 units whereas corresponding demand is 50
units ,and we allocate 25 units i.e. the quantity which is minimum of the
corresponding supply and corresponding demand.
Step-2
Adjust respective supply and demand numbers i.e. as we allocate
25 units in cell(I,I),we are left with demand balance of 25 units whereas whole
of the supply is exhausted.
Step-3
(A) If the supply of the first row is exhausted we move downward
the first cell in the second row and repeat the step-2 .
(B)If demand of
the forst column is met we move horizontally to the next cell in the second
column and repeat the step-2.
After allocating 25 units in cell(1,1)
we allocate 25 units in cell(2,1) ,
then we allocate 50 units in cell(2,2) ,
then we allocate 10 units in cell(3,2) ,
finally we allocate 90 units in cell(3,3)
Step-4
Continue the procedure till total supply is used to meet the
total demand.