Consider the following transportation problem:
The transportation cost in the inital basic feasible solution of the above transportation problem using Vogel's Approximation method is
ans is B here demand and supply are not equal so a dummy column (with cost 0 for all elements) is added with demand 15 to balance it . Then by vogel 's method penalties are calculated and we choose the row with highest panalties and if there is tie chosse the min , next min cost etc