Quantitative techniques

1. Brainware university
Programme Name – Master of Business
Administration
Course Name – Quantitative Techniques
Course Code – MBA208
Department – Management
Semester – II
Topic – North West Corner method
PRESENTED BY,
NAME – SAGIR AHMED KHAN
STUDENT CODE – BWU/MBA/23/047
SECTION – A

2. introduction
North East corner method provides a simple
and systematic approach to solving
transportation problems by allocating
resources from a set of origins to a set of
destinations while minimizing overall
transportation costs. In this method the total
demand should be equal to total supply
which means balanced Transportation
problem.

3. Steps for NWC method

4. Problem – minimize the transportation cost.
Source
Tokyo Paris
London
Rome Supply
Kolkata 19 30 50 10 7
Delhi 70 30 40 60 9
Chennai 40 8 70 20 18
Demand 5 8 7 14 34

5. solution
Source
Tokyo Paris
London
Rome Supply
Kolkata 19 30 50 10 7 2 0
Delhi 70 30 40 60 9 3 0
Chennai 40 8 70 20 18 14 0
Demand
5
0
8
6
0
7
4
0
14
0
34
5 2
6 3
4 14

6. Kolkata
19*5 + 30*2 = 155
Delhi 30*6+40*3 =180+120 = 300
Chennai 70*4=20*40 = 280+280 = 560
Minimum Cost
Required
155+300+560
= 1015

7. Advantages and Limitations

8. In conclusion, the North West Corner
method provides an initial feasible
solution to transportation problem by
systematically allocating resources from
the top left corner of the transportation
matrix. While It is straight forward and
easy to implement, it may not always
yield optimal solution.