Dr.D.B.Usharani Vice Principal (Aided) Associate Professor & Head Department of Economics Ethiraj College for Women Chennai

1. NORTH WEST CORNER METHOD

2. NORTH WEST CORNER METHOD
The North West corner rule is a method for computing a basic feasible solution of a
transportation problem, where the basic variables are selected from the North – West corner (
i.e., top left corner ).
Steps in North West Corner Rule:
1. Select the upper left-hand corner cell of the transportation table and allocate as many
units as possible equal to the minimum between available supply and demand.
2. Adjust the supply and demand numbers in the respective rows and columns.
3. If the demand or supply for the first cell is satisfied, then move horizontally or
vertically to the next cell.

3. NORTH WEST CORNER METHOD
Steps in North West Corner Rule (Contd…)
4. If the supply for the first row is exhausted, then move down to the first cell in the
second row.
5. If for any cell, supply equals demand, then the next allocation can be made in cell
either in the next row or column.
6. Continue the process until all supply and demand values are exhausted.

4. TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 8 6 10 9 35
F2 9 12 13 7 50
F3 14 9 16 5 40
DEMAND 45 20 30 30 125
NORTH WEST CORNER METHOD -EXAMPLE 1

5. TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 35 8 6 10 9 35
F2 9 12 13 7 50
F3 14 9 16 5 40
DEMAND 45 20 30 30
NORTH WEST CORNER METHOD -EXAMPLE 1
STEP 1: Select the upper left-hand corner cell of the transportation table and allocate as many units as
possible equal to the minimum between available supply and demand.

6. TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 35 8 6 10 9 35
F2 10 9 12 13 7 50
F3 14 9 16 5 40
DEMAND 45(10) 20 30 30
STEP 2: Adjust the supply and demand numbers in the respective rows and columns.
NORTH WEST CORNER METHOD -EXAMPLE 1

7. TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 35 8 6 10 9 35
F2 10 9 20 12 13 7 50(40)
F3 14 9 16 5 40
DEMAND 45 20 30 30
NORTH WEST CORNER METHOD -EXAMPLE 1
STEP 3: If the demand or supply for the first cell is satisfied, then move horizontally or
vertically to the next cell.

8. TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 35 8 6 10 9 35
F2 10 9 20 12 20 13 7 50(20)
F3 14 9 16 5 40
DEMAND 45 20 30 30
STEP 4: If for any cell, supply equals demand, then the next allocation can be made in cell either in
the next row or column.
NORTH WEST CORNER METHOD -EXAMPLE 1

9. TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 35 8 6 10 9 35
F2 10 9 20 12 20 13 7 50
F3 14 9 10 16 5 40
DEMAND 45 20 30(10) 30
NORTH WEST CORNER METHOD -EXAMPLE 1

10. TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 35 8 6 10 9 35
F2 10 9 20 12 20 13 7 50
F3 14 9 10 16 30
5
40(30)
DEMAND 45 20 30 30
NORTH WEST CORNER METHOD -EXAMPLE 1

11. TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 35 8 6 10 9 35
F2 10 9 20 12 20 13 7 50
F3 14 9 10 16 30 5 40
DEMAND 45 20 30 30
STEP 5: Now the allocation obtained from north-west corner method is
summarized to find the total cost.
Total Cost = (35*8) + (10*9) + (20*12) + (20*13) + (10*16) + (30*5)
= 1180

12. NORTH WEST CORNER METHOD -EXAMPLE 2
TO →
↓SOURCE
D E F SUPPLY
A
5 8 4
50
B
6 6 3
40
C
3 9 6
60
DEMAND 20 95 35 150
Solve the following using North West Corner Method.

13. NORTH WEST CORNER METHOD -EXAMPLE 2
TO →
↓SOURCE
D E F SUPPLY
A
20 5 8 4
50
B
6 6 3
40
C
3 9 6
60
DEMAND 20 95 35

14. NORTH WEST CORNER METHOD -EXAMPLE 2
TO →
↓SOURCE
D E F SUPPLY
A
20 5 30 8 4
50(30)
B
6 6 3
40
C
3 9 6
60
DEMAND 20 95 35

15. NORTH WEST CORNER METHOD -EXAMPLE 2
TO →
↓SOURCE
D E F SUPPLY
A
20 5 30 8 4
50
B
6 40 6 3
40
C
3 9 6
60
DEMAND 20 95(65) 35

16. NORTH WEST CORNER METHOD -EXAMPLE 2
TO →
↓SOURCE
D E F SUPPLY
A
20 5 30 8 4
50
B
6 40 6 3
40
C
3 25 9 6
60
DEMAND 20 95(25) 35

17. NORTH WEST CORNER METHOD -EXAMPLE 2
TO →
↓SOURCE
D E F SUPPLY
A
20 5 30 8 4
50
B
6 40 6 3
40
C
3 25 9 6
60(35)
DEMAND 20 95 35

18. NORTH WEST CORNER METHOD -EXAMPLE 2
TO →
↓SOURCE
D E F SUPPLY
A
20 5 30 8 4
50
B
6 40 6 3
40
C
3 25 9 35 6
60(35)
DEMAND 20 95 35

19. TO →
↓SOURCE
D E F SUPPLY
A
20 5 30 8 4
50
B
6 40 6 3
40
C
3 25 9 35 6
60(35)
DEMAND 20 95 35 150
Total Cost = (20*5) + (30*8) + (40*6) + (25*9) + (35*6)
= 1015

20. TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 3 3 4 1 100
F2 4 2 4 2 125
F3 1 5 3 2 75
DEMAND 120 80 75 25 300
NORTH WEST CORNER METHOD -EXAMPLE 3
Solve the following Transportation Problem using North West Corner
Method.

21. NORTH WEST CORNER METHOD -EXAMPLE 3
TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 100
3
3 4 1 100
F2 4 2 4 2 125
F3 1 5 3 2 75
DEMAND 120 80 75 25

22. NORTH WEST CORNER METHOD -EXAMPLE 3
TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 100 3 3 4 1 100
F2 20 4 2 4 2 125
F3 1 5 3 2 75
DEMAND 120(20) 80 75 25

23. NORTH WEST CORNER METHOD -EXAMPLE 3
TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 100
3
3 4 1 100
F2 20
4
80
2
4 2 125(105)
F3 1 5 3 2 75
DEMAND 120 80 75 25

24. NORTH WEST CORNER METHOD -EXAMPLE 3
TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 100
3
3 4 1 100
F2 20
4
80
2
25
3
2 125(25)
F3 1 5 3 2 75
DEMAND 120 80 75 25

25. NORTH WEST CORNER METHOD -EXAMPLE 3
TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 100 3 3 4 1 100
F2 20 4 80 2 25 4 2 125
F3 1 5 50 3 2 75
DEMAND 120 80 75(50) 25

26. NORTH WEST CORNER METHOD -EXAMPLE 3
TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 100 3 3 4 1 100
F2 20 4 80 2 25 4 2 125
F3 1 5 50 3 25 2 75(25)
DEMAND 120 80 75 25

27. Total Cost = (100*3) + (20*4) + (80*2) + (25*4) + (50*3) + (25*2)
= 840
TO →
↓SOURCE
D 1 D2 D3 D4 SUPPLY
F1 100 3 3 4 1 100
F2 20 4 80 2 25 4 2 125
F3 1 5 50 3 25 2 75
DEMAND 120 80 75 25 300