TABLE I

Warehouse Projects Supply

1 2 3
A 50 20 40
200
100 100
B 30 30 40 100
50 50
C 40 70 50
50
50
Demand 100 150 100 350

Transportation Cost:
A1: 100(50) = 5,000
A2: 100(20) = 2,000
B2: 50(30) = 1,500
B3: 50(40) = 2,000
C3: 50(50) = 2,500
TOTAL 13,000

Value from the occupied cells:

A1: V1 + W1 = 50 0 + W1 = 50; W1 = 50
A2: V1 + W2 = 20 0 + W2 = 20; W2 = 20
B2: V2 + W2 = 30 V2 + 20 = 30; V2 = 10
B3: V2 + W3 = 40 10 + W3 = 40; W3 = 30
C3: V3 + W3 = 50 V3 + 30 = 50; V3 = 20

Unoccupied cells:
A3 = 40 – 0 – 30 = 10
B1 = 30 – 10 – 50 = -30
C1 = 40 – 20 – 50 = -30
C2 = 70 – 20 – 20 = 30

TABLE II
Warehouse Projects Supply
1 2 3
A 50 20 40 200
50 150
B 30 30 40
100
50 50
C 40 70 50 50
50
Demand 100 150 100 350

Transportation Cost:
A1: 50(50) = 2,500
A2: 150(20) = 3,000
B1: 50 (30) = 1,500
B3: 50(40) = 2,000
C3: 50(50) = 2,500
TOTAL 11,500

Value from the occupied cells:

A1: V1 + W1 = 50 0 + W1 = 50; W1 = 50
A2: V1 + W2 = 20 0 + W2 = 20; W2 = 20
B1: V2 + W1 = 30 V2 + 50 = 30; V2 = -20
B3: V2 + W3 = 40 -20 + W3 = 40; W3 = 60
C3: V3 + W3 = 50 V3 + (-60) = 50;V3 = -10

Unoccupied cells:
A3: 40 – 0 – 60 = -20
B2: 30 – (-20) – 20 = 30
C1: 40 – (-10) – 50 = 0
C2: 70 – (-10) – 20 = 60

TABLE III
Warehouse Projects Supply
1 2 3
A 50 20 40 200
150 50
B 30 30 40
100
100 0
C 40 70 50 50
50
Demand 100 150 100 350

Transportation Cost:
A2: 150(20) = 3,000
A3: 50(40) = 2,000
B1: 100(30) = 3,000
C3: 50(50) = 2,500
TOTAL 10,500

Value from the occupied cells:

A2: V1 + W2 = 20 0 + W2 = 20; W2 = 20
A3: V1 + W3 = 40 0 + W3 = 40; W3 = 40
B1: V2 + W1 = 40 0 + W1 = 30; W1 = 30
B3: V2 + W3 = 40 V2 + 40 = 40; V2 = 0
C3: V3 + W3 = 50 V3 + 50 = 50; V3 = 10

Unoccupied cells:
A1: 50 – 0 – 30 = 20
B2: 30 – 0 – 20 = 10
C1: 40 – 10 – 30 = 0
C2: 70 – 10 – 20 = 40

There are no more negative evaluations, thus, it is not possible to reduce the total cost anymore. The
lowest possible transportation cost is P10,500.