North West Corner Method - Meaning & Definition

Published by MBA Skool Team, Last Updated: May 26, 2013

What is 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

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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