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Determine the optimal solution using MODI method:-
Plants ↓ W1 W2 W3 W4 Supply
A 3 1 7 4 300
B 2 6 5 9 450
C 8 3 3 2 450
Demand 250 350 400 200  
1 Answer
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Finding the initial solution using Penalty method:

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Checking for optimality using MODI (UV) rule:

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All the figures in brackets are greater than zero. So we have already obtained the optimal solution.

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Minimum cost = 250×2 + 300×1 + 50×3 + 200×5 + 200×3 + 200×2 = 2950

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