The Vogel’s approximation method is an iterative procedure for computing a basic feasible solution of the transportation problem. Step I ) Identify the boxes having minimum and next to minimum transportation cost in each row and write the difference (penalty ) along the side of the table against the corresponding row. Step II ) Identify the boxes having minimum and next to minimum transportation cost in each column and write the difference (penalty ) along the side of the table against the corresponding column Step.III) Identify the minimum penalty. If it is along the side of the table make maximum allotment to the box having minimum cost of transportation in that row. If it is below the table, make maximum allotment to the box having minimum cost of transportation in that column. Step IV ) If the penalties corresponding to two or more rows or columns are equal . Select the top most row and the extreme left column.