Our MODI Calculator helps you determine the optimality of a basic feasible solution in transportation problems. Use the Modified Distribution Method to quickly evaluate unoccupied cells and identify opportunities for cost reduction and efficiency improvements in your logistics and supply chain operations.
Formula:
The Optimality Index (Eij) for an unoccupied cell is calculated as:
Eij = Cij - (ui + vj)
- Eij: Evaluation or Improvement Index for unoccupied cell (i, j)
- Cij: Unit cost of transporting goods from source i to destination j for the unoccupied cell
- ui: Row potential for source i
- vj: Column potential for destination j
If Eij is negative, the solution is not optimal and can be improved.