MGMT 6020 - Transportation Model practice Consider the transportation table below: Source Destination Yuma Supply Denver Miami 30 Houston St. Louis Chicago Demand 2) ) 4) 6) 8) 5) 3) 1) ) 6) 2) 40 50 40 40 40 Starting with the upper, left-hand cell, find the starting solution using northwest-corner method: The total cost for the initial solution = Compute the improvement index for the unused cells using the stepping-stone method: . Houston - Yuma = - Houston - Miami = St. Louis - Miami = - Chicago - Denver = Based on the improvement index for each of the unused cells, in the first improvement iteration, unused cell Houston-Miami should get an assignment of units. The improved transportation flow will be: Source Supply Destination Yuma Denver Miami 30 Houston St. Louis Chicago Demand 2) 4) 6) 6 8) 5) 5) 3) 1) 1 6) 2) 40 50 40 40 40 The total cost of the improved solution = $