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290   CHAPTER 7 TRANSPORTATION, ASSIGNMENT AND TRANSSHIPMENT PROBLEMS



                                      Table 7.5 Transportation Tableau after Three Iterations of the Minimum Cost
                                      Method

                                                       Boston   Dubai   Singapore  London  Supply
                                                           3        2        7        6
                                                                                           1 000
                                               Czech            4 000                      5000
                                             Republic

                                                           7        5        2        3
                                                                                           4 000
                                               Brazil                     2 000            6000


                                                           2        5        4        5
                                                                                             0
                                                       2500                                2500
                                               China

                                                        6000     4000     2000     1 500
                                             Demand
                                                        3 500      0        0




                                      Table 7.6 Transportation Tableau after Five Iterations of the Minimum Cost
                                      Method

                                                         Boston    Dubai  Singapore  London  Supply
                                                              3        2        7        6     0
                                                                                              1000
                                                 Czech    1 000    4 000                      5000
                                               Republic

                                                              7        5        2        3    2 500
                                                                                              4000
                                                  Brazil                    2 000    1 500    6000


                                                              2        5        4        5
                                                                                               0
                                                          2 500                               2500
                                                 China

                                                          6000     4000     2000     1500
                                               Demand
                                                          3500        0        0        0
                                                          2 500


                                     Summary of the Minimum Cost Method        Before applying phase II of the
                                     transportation Simplex method, let us summarize the steps for obtaining an initial
                                     feasible solution using the minimum cost method.
                                       Step 1. Identify the cell in the transportation tableau with the lowest cost, and
                                              allocate as much flow as possible to this cell. In case of a tie, choose the
                                              cell corresponding to the arc over which the most units can be shipped. If
                                              ties still exist, choose any of the tied cells.
                                       Step 2. Reduce the row supply and the column demand by the amount of flow
                                              allocated to the cell identified in step 1.




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