Izzy Plastic Processing Company has three processing plants in three locations. It received orders from three customers. Plant 1 has 700 cartons, Plant 2 has 500 cartons, and Plant 3 has 300. cartons. Customer A needs 400 cartons, customer B needs 500 cartons, and customer C needs 600 cartons.

The costs of transportation per carton of the product from the plants to the customers are presented as follows:

 

                 Customer A         Customer B             Customer C

Plant 1           ₱5.00                  ₱2.00                       ₱5.50

Plant 2          ₱4.00                  ₱2.50                       ₱3.00

Plant 3          ₱4.50                  ₱3.50                       ₱3.00

 

Required:

Determine the distribution of the products to the three customers where the transportation costs are minimized using the stepping-stone and modified distribution (MODI) methods following the northwest corner rule for the initial solution.