Determine optimal solution to the problem given below. Obtain the initial solution by VAM.

Since the aggregate supply is 220 units and the aggregate demand is 200 units, we introduce a dummy market, M5, for an amount equal to 20 (the difference between the aggregate supply and demand), with all cost elements equal to zero. The initial solution is given in Table 5.20.

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To Market M M2 M3 M4 Supply P 6 4 9 1 40 From P2 20 6 11 3 40 Plant P3 7 1 0 14 50 PA 7 1 12 6 90 Demand 90 30 50 30