quantitative methods of business decisions chapter5 part 4

School of Business
Department of Management Information Systems
BMIS355: Quantitative Methods of Business Decisions

Chapter 5 | Part 4


Transportation Model & It’s Variants

Spring 2020 - 2021

BMIS355- CHAPTER 5

, Transportation Model & Its Variants
❑ Step 2: For each current “Non-Basic Variable”:
➢ Compute the values of the reduced costs using
➢ “𝑼𝒊 + 𝑽𝒋 − 𝑪𝒊𝒋 "

𝑽𝟏 = 𝟒 𝑽𝟐 = 𝟓 𝑽𝟑 =14 𝑉4 =2 Supply
4 6 8 20 20
𝑼𝟏 = 𝟎
20
10 11 7 7 25
𝑼𝟐 = 𝟔
13 12
3 4 13 1 30
𝑼𝟑 = −𝟏
10 11 9

Demand 33 22 11 9 75



BMIS355- CHAPTER 5