VAM
(0) Given: An initial balanced transportation tableau.
(1) Compute the difference of the two smallest entries in every row and column of the tableau and write this difference opposite the row or column. (It there is only one entry in any row or column, write that entry.)
(2) Choose the largest difference and use the smallest cost in the corresponding row or column to empty a warehouse or completely fill a market demand. (If there is a tie for the largest difference, use the smallest entry in the corresponding rows and/or columns. If there is a tie for the smallest entry, use any such entry.) Circle the cost used and write above the circle the amount of goods shipped by that route. Reduce the supply and demand in the row and column containing the cost used.
(3) Delete the row or column corresponding to the emptied warehouse or fully supplied market; if both happen simultaneously, delete the row unless that row is the only row remaining in which case delete the column.
(4) If all tableau entries are deleted, STOP; otherwise, go to (1).
We now apply VAM to Example 1 of ….1