Four factories, A, B, C and D produce sugar and the capacity of each factory is given
below:
Factory A produces 10 tons of sugar and B produces 8 tons of sugar, C produces 5 tons
of sugar and that of D is 6 tons of sugar. The sugar has demand in three markets X, Y
and Z. The demand of market X is 7 tons, that of market Y is 12 tons and the demand of
market Z is 4 tons. The following matrix gives the transportation cost of 1 ton of sugar
from each factory to the markets in thousands of rupees. Find the initial solution by
Vogel’s approximation method and optimal solution using MODI method.
