- Take Dummy (if required) for balancing the problem & then convert in Regret matrix (if required) if it is a Maximization problem.
- If there is any Restriction or Prohibition, convert it in M.
- Find IFS. If the method for IFS is specified in question, use only that method. But if any method is not specified, VAM is preferable. (It will reduce your work when you test for Optimality using MODI).
- After finding IFS, MODI begins. Find “U & V” values from allocations.
- Then for empty cells, find Opportunity costs (Delta ∆). If any Delta is/are Positive, solution is not optimal. But if all Delta are Negative or zero, solution is optimal.
- If any Delta is Positive, start a loop from maximum Positive delta. E. g. if there are two Positive delta (5 and 2), then start loop from 5. Not from 2.
- Then write next table. Again find new “U, V, and Delta”. Repeat from Step no. 5.