MODIFIED DISTRIBUTION METHOD

UNBALANCED
Steps:
If demand is greater than supply use a dummy supply.
If supply is greater than demand use a dummy demand.
Add the cost factors to get the cost of the occupied cells, by assuming
one value and solving for the rest.
Subtract the outside cost factors from the indicated cost of the vacant
cells. The most negative result indicates the point of destination to
transfer.

PROBLEM 1 (UNBALANCED TABLE)

INITIAL TABLE

V1

FROM
TO
1

W1

W2

W3

SUPPL
Y

16

24

DUMM
Y
DEMAN
D

16

Occupied cells:

16

58
44

V4

Vi+ Wi= Cij

56

24
V3

Cij= cost per unit

56
V2

COST= 3496

82

V1+W1= 4
V2+W2=24
V3+W3=24

77

V2+W1=16
V3+W2=16
V4+W3=0

24

33
0

Assume V1=0, to solve the rest

223

80

102

41

223

V1+W1= 4

V2+W2=24

V3+W3=24
0+ W1= 4 12+W2=24 4+W3=24
W1=4
W2=12
W3=20
V2+W1=16 V3+W2=16 V4+W3=0
V2+4=16
V3+12=16
V4+20=0
V2=12
V3=4 V4=-20

TABLE 1

W1= W2=1
4
2
A
B

W3=2
0
C

T
V1=0

V3=4

56

16

24

24

82
16

44
V4=20

DUMMY

16

58
8
0

24

33
0

77
0

8
DEMAN
D

8
223

80

102

VC:
check:

56
V2=1
2

COST=3496
SUPPL
Y

41

223

1B
1B
1C

8-0-12= -4
8-4+16-24= -4
8-0-20= -12
1C
8-4+16-24+16-24= -12

2C
16
3A
dummyA
0=16
dummyB

16-12-20=-16

2C

8-4-4=0
0-(-20)-4=16

3A

0-(-20)-12=8

16-24+16-24=-

8-16+24-16=0
dummyA
0-16+24-16+24dummyB

0-16+24-0=8

TABLE 2

W1= W2=1
4
2
A
B

W3=4
C

SUPPL
Y

T
V1=0

56
V2=1
2

V3=4

56

16

24

24
33

25
8

16

16

82
24

77
V4=
-4

DUMMY

77

8
DEMAN
D

COST=2968

223

80

102

41

223

Assume V1=0, to solve the

rest
V1+W1= 4

V2+W2=24

V2+W3=16
0+W1= 4 12+W2=24 12+W3=16
W1=4
W2=12
W3=4
V2+W1=16 V3+W2=16 V4+W3=0
V2+4=16
V3+12=16
V4+4=0
V2=12
V3=4 V4=-4
VC:
1B

8-0-12= -4

1C

8-0-4=4

3A

8-4-4=0

3C

24-4-4=16

DummyA

0-(-4)-4=0

DummyB 0-(-4)-12= -8

W1= W2=1
4
2
A
B

W3=4
C

SUPPL
Y

T
V1=0

56

56

V2=1
2

16

V3=4

V4=
-12

DUMMY

24

24

17

16

41

82

16

24

77

77

8
DEMAN
D

TABLE 3

8
223

80

102

41

223

COST=2904
Assume V1=0, to solve the
rest
V1+W1= 4
V2+W2=24
V4+W2=0

0+W1= 4 12+W2=24 V4+12=0

W1=4
W2=12
V4=-12
V2+W1=16 V3+W2=16 V2+W3=16
V2+4=16 V3+12=16
12+W3=16
V2=12
V3=4
W3=4

VC:
1B

8-0-12= -4

1C

8-0-4= 4

3A

8-4-4= 0

3C

24-4-4= 16

DummyA

0-(-12)-4= 8

DummyB

0-(-12)-4= 8

TABLE 4

W1= W2=8
4
A
B

W3=4
C

SUPPL
Y

T
V1=0

39
V2=1
2

V3=8

17

16

56
24

41

16

41
8

16

82
24

77
V4=
-8

DUMMY

77
0

8
DEMAN
D

8
223

80

102

41

COST=2836
Assume V1=0, to solve the rest
V1+W1= 4 V1+W2=8 V2+W3=16
0+W1= 4 0+W2=8 12+W3=16
W1=4
W2=8
W3=4
V2+W1=16 V3+W2=16
V2+4=16 V3+8=16
V2=12
V3=8
VC:
1C
2B

8-0-4= 4
24-12-8=4

V4+W2=0
V4+8=0
V4=-8

223

3A

8-8-4= -4

3C

24-8-4=12

DummyA

0-(-8)-4=4

DummyC

0-(-8)-4= 4

TABLE 5

W1= W2=8
0
A
B

W3=0
C

SUPPL
Y

T
V1=0

56
V2=1
6

16

V3= 8

V4=
-8

DUMMY

56
24

41

16

41
8

39

82

16

24

38
0

77

8
DEMAN
D

8
223

80

102

41

223

Assume V1=0, to solve the rest

V1+W2= 8 V4+W2=0 V2+W1=16
0+W2= 8 V4+8=0
V2+0=16
W2=8
V4=-8
V2=16
V3+W2=16 V3+W1=8
V3+8=16 8+W1=8
V3=8
W1=0
VC:
1A

4-0-0=4

1C

8-0-0=8

2B

24-16-8=0

3C

24-8-0=16

DummyA

0-(-8)-0=8

DummyC

0-(-8)0=8

V2+W3=0
16+W3=0
W3=0

Since there is no negative in the improvement, the above table is optimum

Decision:
Plant 1 to Project B 158 x 8 =448
2 to

A 41 x 16 =656

2 to

C 143 x 16=656

3 to
3 to

A 133 x 8 = 312
B

46 x 16 = 608

Minimum cost:

2680