Activity 1: 

        A B C Supply
To
From
1                7                5                9
10  

2                9                               6 11

12  

3                                             17                             12 16
2

Demand 12 12 12 36

        A B C Supply
To
From
1                7                5                9
X1A X1B 10  
X1C
2                9                               6 11
X2A 12   X2C
X2B
3                                             17                             12 16
2 X3B X3C
X3A
Demand 12 12 12 36

Objective Function:
Minimize : Zj = 7X1A + 5X1B + 10X1C + 9X2A + 12X2B + 6X2C + 2X3A + 17X3B + 12X3C

Constraints:
    Subject to: X1A + X1B + X1C = 9
              X2A + X2B + X2C = 11
              X3A + X3B + X3C = 16
              X1A + X2A + X3A = 12
              X1B + X2B + X3B = 12
              X1C + X2C + X3C = 12
                Xij ≥ 0

By Northwest Corner Rule (NCR)

Step 1:

        A B C Supply
To
From
1                7                5                (9)
9 10  
2                9                               6 11
12  

3                                             17                             12 16
2

Demand 3 12 12 36
(12)

Step 2:
        A B C Supply
To
From
1                7                5                (9)
9 10  
2                9                               6 (11)
3 12   8
3                                             17                             12 16
2

Demand (12) 12 12 36

Step 3:
        A B C Supply
To
From
1                7                5                (9)
9 10  
2                9                               6 (11)
 3 12  8
8
3                                             17                             12 16
2

Demand 12 4 12 36
(12)

Step 4:
        A B C Supply
To
From
1                7                5                (9)
9 10  
2                9                               6 (11)
3 12 
8
3                                             17                             12 (16)
2 4 12

Demand 12 (12) 12 36

Step 5:

        A B C Supply
To
From
1                7                5                9
9 10  
2                9                               6 11
3 12 
8
3                                             17                             12 16
2 4 12

Demand 12 12 12 36

Using Minimization Problem by Modified Distribution Method (MODI)

Tableau 1:
        A B C Supply
To
From
1                7                5                9
9 X1B 10  
X1C
2                9                               6 11
3 12  X2C
8
3                                             17                             12 16
2 4 12
X3A
Demand 12 12 12 36

Step 1: Compute the stone squares:

Source-Destination Combination Quantity shipped x Unit Cost Total Cost

X1A 9          x          7 63
X2A 3          x          9 27
X2B   8          x          12 96
X3B   4          x          17 68
X3C 12          x          12 144
Total transportation cost P398

 Step 2:  Represent a new variable for each row and column:
   
Let U = a value assigned to row 1
i

          V =  a value assigned to column 1, and

i

          C = a value to cost in square ij.

i

    Using the formula of cost of the stone square ij:

        Cj = Ui + Vj

Step 3: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.

X1A » U1 + V1 = 7 
X2A » U2 + V1 = 9
X2B » U2 + V2 = 12
X3B » U3 + V2 = 17 
X3C » U3 + V3 = 12

            V1 = 7,  U2 = 2,  V2 = 10,  U3 = 7,  V3 = 5

Step 4: Evaluate the stone square in the initial solution by finding the improvement index.

Unused square Cij - Ui – Vj Improvement indices

X1B X1B – U1 – V2 5 – 0 – 10 = - 5
X1C X1C – U1 – V3 10 – 0 – 5 = 5
X2C X2C – U2 – V3 6–2–5=-1
X3A X3A – U3 – V1 2 – 7 – 7 = - 12

Step 5:
Tableau 2:
        A B C Supply
To
From
1                7                5                9
9 10  

2                9                               6 11

12 
11
3                                             17                             12 16
2 1 12
3
Demand 12 12 12 36

Step 6:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 9          x          7 63
X3A 3          x          2 6
X2B 11         x          12 132
X3B   1          x          17 17
X3C 12          x          12 144
Total transportation cost P362
Step 7: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.

X1A » U1 + V1 = 7 
X3A » U3 + V1 = 2
X2B » U2 + V2 = 12
X3B » U3 + V2 = 17 
X3C » U3 + V3 = 12

            V1 = 7,  U3 = - 5,  V2 = 22,  U2 = - 10 ,  V3 = 17

Step 8: Evaluate the stone square in the initial solution by finding the improvement index.

Unused square Cij - Ui – Vj Improvement indices

X1B X1B – U1 – V2 5 – 0 – 22 = -17
X1C X1C – U1 – V3 10 – 0 – 17 = -7
X2C X2C – U2 – V3 6 – (-10) – 17 = -1
X2A X2A – U2 – V1 9 – (-10) – 7 = 12

Step 9:
Tableau 3:
        A B C Supply
To
From
1                7                5                9
8 1 10  

2                9                               6 11

12 
11
3                                             17                             12 16
2 12
4
Demand 12 12 12 36

Step 10:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
 X1A 8          x          7 56
X1B 1          x          5 5
X2B 11         x          12 132
X3A   4          x          2 8
X3C 12          x          12 144
Total transportation cost P345

Step 11: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.

X1A » U1 + V1 = 7 
X1B » U1 + V2 = 5
X2B » U2 + V2 = 12
X3A » U3 + V1 = 2
X3C » U3 + V3 = 12
            V1 = 7,  V2 = 5,  U2 = 7, U3 = -5,  V3 = 17
           
Step 12: Evaluate the stone square in the initial solution by finding the improvement index.

Unused square Cij - Ui – Vj Improvement indices

X1C X1C – U1 – V3 10 – 0 – 17 = -7
X2A X2A – U2 – V1 9 – 7 – 7 = -5
X2C X2C – U2 – V3 6 – 7 – 17 = -18
X3B X3B – U3 – V2 17 – (-5) – 5 = 17

Step 13:
Tableau 4:
        A B C Supply
To
From
1                7                5                9
8 1 10  

2                9                               6 11

12  11

3                                             17                             12 16
 2 11 1
4
Demand 12 12 12 36

Step 14:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 8          x          7 56
X1B 1          x          5 5
X2C 11        x          6 66
X3A 4           x          2 8
X3B 11          x          17 187
X3C 1          x          12 12
Total transportation cost P334

Step 15: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.

X1A » U1 + V1 = 7 
X1B » U1 + V2 = 5
X2C » U2 + V3 = 6
X3A » U3 + V1 = 2
X3B » U3 + V2 = 17
X3C » U3 + V3 = 12
            V1 = 7,  V2 = 5,  U3 = -5,  V2 = 22,  V3 = 17,  U2 = -11

Step 16: Evaluate the stone square in the initial solution by finding the improvement index.

Unused square Cij - Ui – Vj Improvement indices

X1C X1C – U1 – V3 10 – 0 – 17 = -7
X2A X2A – U2 – V1 9 – (-11) – 7 = 13
X2B X2B – U2 – V2 12 – (-11) – 22 = 1

Step 17:
Tableau 5:
        A B C Supply
 To
From
1                7                5                9
8 10  
1
2                9                               6 11
12  10
1
3                                             17                             12 16
2 3 1
12
Demand 12 12 12 36
Step 18:

Source-Destination Combination Quantity shipped x Unit Cost Total Cost

X1B 8          x          5 40
X1C 1          x          10 10
X2B 1         x          12 12
X2C   10          x          6 60
X3A 12          x          2 24
X3B 3          x          17 51
X3C 1          x          12 12
Total transportation cost P209

Step 19: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.

X1B » U1 + V2 = 5
X1C » U1 + V3 = 10
X2B » U2 + V2 = 12
X2C » U2 + V3 = 6
X3A » U3 + V1 = 2
X3B » U3 + V2 = 17
X3C » U3 + V3 = 12
            V2 = 5, V3 = 10, U2 = 7, U3 = 12, V1 = -10

Step 16: Evaluate the stone square in the initial solution by finding the improvement index.

Unused square Cij - Ui – Vj Improvement indices

X1A X1A – U1 – V1 7 – 0 – (-10) = 17
X2A X2A – U2 – V1 9 – 7 – (-10) = 12

Since the improvement index does not contain any negative value in the solution is optimum.
X1B = 8        X1C = 1        X2B = 1
X2C = 10    X3A = 12    X3B = 3
X3C = 1

Zj = 7(0) + 5(8) + 10(1) + 9(0) + 12(1) + 6(10) + 2(12) + 17(3) + 12(1)

     = ₱ 209.00

Activity 2

        A B C Supply
To
From
1 50 60 65   24

2 45 53 63 27

3   42     60 14
49

Demand 20 15 30 65

        A B C Supply
To
From
1 50 60 65 24
X1A X1B X1C
2 45 53 63 27
X2A X2B X2C
3   42   49   60 14
X3A X3B X3C
Demand 20 15 30 65

Objective Function:
Minimize : Zj = 50X1A + 60X1B + 65X1C + 45X2A + 53X2B + 63X2C + 42X3A + 49X3B + 60X3C

Constraints:
    Subject to: X1A + X1B + X1C =24
              X2A + X2B + X2C = 27
              X3A + X3B + X3C = 14
              X1A + X2A + X3A = 20
              X1B + X2B + X3B = 15
              X1C + X2C + X3C = 30
                Xij ≥ 0

By Northwest Corner Rule (NCR)

Step 1:
        A B C Supply
To
From
1 50 60 65 (24)
20 4
2 45 53 63 27

3   42     60 14
49

Demand (20) 15 30 65

Step 2:

        A B C Supply
To
From
1 50 60 65 (24)
20 4

2 45 53 63 27

3   42   49   60 14

Demand (20) 11 30 65
(15)

Step 3:
         A B C Supply
To
From
1 50 60 65 (24)
20 4

2 45 53 63 (27)
11 16

3   42   49   60 14

Demand (20) (15) 30 65

Step 3:

        A B C Supply
To
From
1 50 60 65 (24)
20 4

2 45 53 63 (27)
11 16

3   42   49   60 14

Demand (20) (15) 14 65

(30)

Step 4:

        A B C Supply
To
From
1 50 60 65 24
20 4

2 45 53 63 27
11 16

3   42     60 14
49 14

Demand 20 15 30 65
Using Minimization Problem by Modified Distribution Method (MODI)

Tableau 1:

        A B C Supply
To
From
1 50 60 65 24
20 4 X1C

2 45 53 63 27
X2A 11 16

3   42   49   60 14
X3A X3B 14
Demand 20 15 30 65

Step 1: Compute the stone squares:

Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 20          x          50 1000
X1B 4          x          60 240
X2B   11          x          53 583
X2C   16          x          63 1008
X3C 14          x          60 840
Total transportation cost P3671

 Step 2:  Represent a new variable for each row and column:
   
Let U = a value assigned to row 1
i

          V =  a value assigned to column 1, and

i

          C = a value to cost in square ij.

i

    Using the formula of cost of the stone square ij:

        Cj = Ui + Vj

Step 3: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1A » U1 + V1 = 50
X1B » U1 + V2 = 60
X2B » U2 + V2 = 53
X2C » U2 + V3 = 63
X3C » U3 + V3 = 60
            V1 = 50, V2 = 60, U2 = -7 , V3 = 70 , U3 = -10

Step 4: Evaluate the stone square in the initial solution by finding the improvement index.

Unused square Cij - Ui – Vj Improvement indices

X1C X1C – U1 – V3 65 – 0 – 70 = -5
X2A X2A – U2 – V1 45 – (-7) – 50 = 2 
X3A X3A – U3 – V1 42 – (-10) – 50 = 2
X3B X3B – U3 – V2 49 – (-10) – 60 = -1

Step 5:
Tableau 2:

        A B C Supply
To
From
1 50 60 65 24
4 4 16

2 45 53 63 27
16 11

3   42     60 14
49 14

Demand 20 15 30 65

Step 6:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 4 x 50 200
X1B 4 x 60 240
X1C 16 x 65 1040
X2A 16 x45 720
X2B   11 x 53 583
X3C 14 x 60 840
Total transportation cost P3623
Step 7: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.

X1A » U1 + V1 = 50
X1B » U1 + V2 = 60
X1C » U1 + V3 = 65
X2A » U2 + V1 = 45
X2B » U2 + V2 = 53
X3C » U3 + V3 = 60
                V1 = 50, V2 = 60, V3 = 65, U2 = -5, U3 = -5

Step 8: Evaluate the stone square in the initial solution by finding the improvement index.

Unused square Cij - Ui – Vj Improvement indices

X2C X2C – U2 – V3 63 – (-5) – 65 = 3
X3A X3A – U3 – V1 42 – (-5) – 50 = -3
X3B X3B – U3 – V2 49 – (-5) – 60 = -6

Step 9:
Tableau 3:

        A B C Supply
To
From
1 50 60 65 24
4 4 16

2 45 53 63 27
16 11

3   42     60 14
49 3
11
Demand 20 15 30 65

Step 10:
Source-Destination Combination Quantity shipped x Unit Cost Total Cost
X1A 4          x          50 200
X1B 4          x          60 240
X1C 16          x          65 1040
X2A   16          x          45 720
X2C   11          x          63 693
 X3B 11          x          49 539
X3C 3          x          60 180
Total transportation cost P3612

Step 11: Substitute the appropriate value for each Cij, let Ui be equal to zero or U1 = 0 and compute for
the unknown.
X1A » U1 + V1 = 50
X1B » U1 + V2 = 60
X1C » U1 + V3 = 65
X2A » U2 + V1 = 45
X2C » U2 + V3 = 63
X3B » U3 + V2 = 49
X3C » U3 + V3 = 60
                V1 = 50, V2 = 60, V3 = 65, U2 = -5, U3 = -11

Step 12: Evaluate the stone square in the initial solution by finding the improvement index.
Unused square Cij - Ui – Vj Improvement indices
X2B X2B – U2 – V2 63 – (-5) – 60 = 8
X3A X3A – U3 – V1 42 – (-11) – 50 = 3

Since the improvement index does not contain any negative value in the solution is optimum.
X1A = 4        X1B = 4        X1C = 16
X2A = 16    X2C = 11    X3B = 11
X3C = 3

Zj = 50(4) + 60(4) + 65(16) + 45(16) + 53(0) + 63(11) + 42(0) + 49(11) + 60(3)

    = ₱3,612