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Used in transportation modelling to minimise the cost. The steps are

  1. Select any unused square to evaluate
  2. Begin at this square. Trace a closed path back to the original square via squares that are currently being used (only horizontal or vertical moves allowed)
  3. Place + in unused square; alternate - and + on each corner square of the closed path
  4. Calculate improvement index: add together the unit cost figures found in each square containing a +ve; subtract the unit cost figure in each square containing a -ve.
  5. Repeat steps 1-4 for each unused square

if the index total is -ve that means you have saved money.

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13y ago

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