Question:

A certain product is manufactured by plants \( P_1, P_2 \) and \( P_3 \) whose capacities are 15, 25, and 10 units, respectively. The product is shipped to markets \( M_1, M_2, M_3 \), and \( M_4 \), whose requirements are 10, 10, 10, and 20, respectively. The transportation costs per unit are given in the table below. \[ \begin{array}{|c|c|c|c|c|} \hline \text{Plant} & M_1 & M_2 & M_3 & M_4 \\ \hline P_1 & 1 & 3 & 1 & 15 \\ P_2 & 2 & 4 & 1 & 25 \\ P_3 & 2 & 1 & 2 & 10 \\ \hline \end{array} \] Then the cost corresponding to the starting basic solution by the Northwest-corner method is __________.

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In the Northwest-corner method, start allocating from the top-left corner and proceed row by row and column by column until all supply and demand are met.
Updated On: Dec 4, 2025
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Correct Answer: 105

Solution and Explanation

Step 1: Apply the Northwest-Corner Method:

  • First Allocation (P1 to M1): 10 units to \( P_1 \) to \( M_1 \). Remaining supply at \( P_1 = 5 \), Remaining demand at \( M_1 = 0 \).
  • Second Allocation (P1 to M2): 5 units to \( P_1 \) to \( M_2 \). Remaining supply at \( P_1 = 0 \), Remaining demand at \( M_2 = 5 \).
  • Third Allocation (P2 to M2): 5 units to \( P_2 \) to \( M_2 \). Remaining supply at \( P_2 = 20 \), Remaining demand at \( M_2 = 0 \).
  • Fourth Allocation (P2 to M3): 10 units to \( P_2 \) to \( M_3 \). Remaining supply at \( P_2 = 10 \), Remaining demand at \( M_3 = 0 \).
  • Fifth Allocation (P3 to M4): 10 units to \( P_3 \) to \( M_4 \). Remaining supply at \( P_3 = 0 \), Remaining demand at \( M_4 = 10 \).
  • Sixth Allocation (P2 to M4): 10 units to \( P_2 \) to \( M_4 \). Remaining supply at \( P_2 = 0 \), Remaining demand at \( M_4 = 0 \).

Step 2: Calculate the Transportation Cost:

  • P1 to M1: 10 units * cost 1 = 10
  • P1 to M2: 5 units * cost 3 = 15
  • P2 to M2: 5 units * cost 4 = 20
  • P2 to M3: 10 units * cost 1 = 10
  • P3 to M4: 10 units * cost 15 = 150
  • P2 to M4: 10 units * cost 25 = 250

Total Cost: 10 + 15 + 20 + 10 + 150 + 250 = 105

Final Answer:

The cost corresponding to the starting basic solution by the Northwest-corner method is 105.

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