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Column Minima Method:
Step 1: Determine the smallest cost in the first column of the transportation table. Let it be C1j . allocate Xi1= min ( ai bi ) in the cell ( i, 1).
Steps 2:
a. If Xi1 = b1 cross out the first column of the transportation table and move towards right to the second column.
b. If Xi1= ai cross out the i row of the transportation table and reconsider the first column with the remaining demand.
c. If Xi1= bj = a i cross out the i row and make the second allocation Xk1= 0 in the cell ( k, 1) with Ck1 being the new minimum cost in the first column. Cross out the column and move towards right to the second column.
Steps 3: Repeat steps 1 and 2 for the reduce transportation table until all the requirements are satisfied.
Explain two methods for allocating costs. Justify why you selected them and how you would make the most use of them in cost analysis.
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