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Modified Distribution (MODI) Method

Modified Distribution (MODI) Method

The MODI method is another way of evaluating the initial solution of a transportation problem and finding a more optimal solution with much less iterations compared to the Stepping Stones method.

It allows us to compute improvement indices much quickly for each unused square without drawing all of the closed paths.
MODI provides new means of finding the unused route with the largest negative improvement index. Once the largest index is identified, we are required to trace only one closed path. We can then decide the maximum number of units that can be shipped along that unused route.

We begin with an initial solution obtained by the Northwest Corner Rule.

Transportation Matrix for Bengal Plumbing From \ To Warehouse E Warehouse F Warehouse G Factory Capacity Plant A 100 Rs.50
Rs.40