North West Corner Method

Posted in Operations and Supply Chain Terms, Total Reads: 6003
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Definition: North West Corner Method

North West corner method is used in transportation problems to calculate basic feasible solution. The basic variables are selected from the north-west corner of the transportation matrix. The standard procedure for North West corner method is as follows:


  • Select the north west (upper left hand corner)of the transportation matrix and assign as many units as possible equal to the minimum between available supply and given demand
  • Adjust the supply constraint and demand constraint in the respective rows and columns
  • If the demand in the first cell is fulfilled, then we move horizontally to the next cell in the second column
  • If the supply for the first row is over, then we need to move down to first cell in the next row
  • For any cell, if the supply and demand equal, then the next allocation is made in a cell of the next row or column
  • The process needs to be continued until all the supply and demand are exhausted

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