CHAPTER-3

NORTH-WEST CORNER MOTHOD

The North - west corner method is a technique used in operations research
and is specifically applied to solve transportation problems. A transportation
problem involves finding the most cost-effective way to transport goods from
multiple suppliers to multiple consumers while minimizing the
transportation cost.
The methods name comes from the fact that is starts at the
"North -West corner" of the transportation matrix, where the first supply and
demand meet. It is often used as an initial step in finding a feasible solution,
which can then be improved upon using other methods, such as the MODI
(Modified Distribution) method, to find optimal solution.
This method is easy to understand and apply. It only requires
knowledge of matrix operations and follows straightforward step by step
procedure. It gives an initial feasible solution to the transportation problem,
which can be useful when starting out and looking for a valid starting point. Since
the method only involves filling cells with allocations based on a supply and
demand it requires minimal computational resources and can be applied quickly,
even to large transportation problem. This method follows a systematic path that
ensures all constraints (supply & demand) are satisfied.
Steps: (i) Select the north west (upper left-hand) corner cell of the transportation
problem table and allocates as many units as possible equal to the minimum
between available supply and demand requirements, i.e min(S1, d1).
(ii) Adjust the supply and demand numbers in the respective rows and columns
allocation.
(iii) If the supply for the first row is exhausted than more down to the first cell in
the second row.
(iv) If the demand for the first cell is satisfied than move horizontally to the next
cell in the second column.
(v) If for any cell supply equals demand than the next allocation can be made in
cell either in the next row or column.
(vi) Continue the procedure until the total available quantity is fully allocated to
the cells as required.
Example:
Find the initial basic feasible solution using the North-West Corner Method.
TABLE: 3.1

DESTINATION SUPPLY

A B C D

E 3 1 7 4 300

F 2 6 5 9 400

G 8 3 3 2 500

DEMAND 250 350 400 200

Solution:
Step 1:
General transportation matrix is shown in Table: 3.2. In this table total number
of supply end total number of demands is equal. This is a balanced
transportation problem.
In mathematically,
Total supply =300+400+500= 1200
Total demi= 250+350+400+200= 1200
 TABLE: 3.2

DESTINATION SUPPLY

A B C D

E 3 1 7 4 300

F 2 6 5 9 400

G 8 3 3 2 500

DEMAND 250 350 400 200

Step 2:
First we select the north west (upper left hand) corner cell of the
transportation Table 3.1. Among supply and demand is minimum so we
allocated the minimum value in this cell.
Min (300,250)=250. After allocate this value the supply in this E will be 300-
250= 50 and the demand in A this column will be 250-250=0. Then the entire A
column will be cancelled.
TABLE: 3.3

DESTINATION SUPPLY

A B C D
250
E 3 1 7 4 300-150=50

F 2 6 5 9 400

G 8 3 3 2 500

DEMAND 250-250=0 350 400 200

Step 3:
Now we have to select the north west corner cell from the unallocated cell of
Table 3.3. Then put the minimum value among supply and demand. Min
(50,350)=50. After putting this value the amount of supply in E row is 50-50=0
and the amount of demand in B column is 350 - 50 = 300. Hence the entire row
E is cancelled.
TABLE: 3.5

DESTINATION SUPPLY

A B D
50
E 1 7 4 50-50=0

F 6 5 9 400

G 3 3 2 500

DEMAND 350-50=300 400 200

Step 4:
Again we have to select the north west corner cell from unallocated cell of
Table: 3.4 then we will put the minimum value among supply and demand.
Min (400,300)= 300 After that the value of supply in F row is 400-300=100 and
the value of demand in B column is 300-300=0. Hence the entire
column B is cancelled.
 TABLE: 3.5

DESTINATION SUPPLY

B C D
300
F 6 5 9 400-300=100

G 3 3 2 500

DEMAND 300-300=0 400 200

Step 5:
Similiarly we will select the north west corner from unallocated cell of Table :3.5.
We put the least value among supply and demand. Min (100,400) = 100.After
that the value of supply in F row is 100-100 = 0 and the value of demand in C
column is 400 - 100 = 300, so the entire row F is cancelled.
TABLE: 3.6

DESTINATION SUPPLY

C D
100
F 5 9 100-100=0

G 3 2 500

DEMAND 400-100=300 200

Step 6:
Again we have to select the north west corner cell from unallocated of Table 3.6.
We will put the least value among the supply and demand. Min (500,300)= 300.
After that the value of supply in G row is 500-300= 200 and the value of demand
in column C is 300-300=0. So the. Column C is cancelled.
TABLE: 3.7

DESTINATION SUPPLY

C D
300
G 3 2 500-300=200

DEMAND 300-300=0 200

Step 7:
Finally we have only one unallocated cell. In this cell the amount of supply is
same as the amount of demand. So we allocate this number in the single cell.
i.e 200
TABLE: 3.8

DESTINATION
SUPPLY
D
200
G 2 200

DEMAND 200

Step 8:
Finally the amount of supply and amount of demand is 0.
We got the final table.
 TABLE: 3.9

DESTINATION SUPPLY

B C D
250 50
E 3 1 7 4 300
300 100
F 2 6 5 9 400
300 200
G 8 3 3 2 500

DEMAND 250 350 400 200

Total transportation cost will be = (250 × 3) + (50 × 1) + (300 × 6) + (100 × 5) +

(300 × 3) + (200 × 2)
=750 + 50 + 1800 + 500 + 900 + 400
=4400
Disadvantages of NWCM:
The solution provided by the North - West corner method is generally not
optimal. It just provides a feasible solution, but additional optimization
techniques (like MODI method) are required to improve the solution. This
method doesn't take transportation costs into account, which can lead to
suboptimal solutions. The allocation of resources based on the NWCM may not
be the most cost-effective, as it prioritizes satisfying demand rather than
minimizing costs.