The very first step of the lowest cost method is to find the cell with the lowest cost in the entire matrix representing the cost of transportation along with supply and demand.
C. Find the cell with the lowest cost from the remaining (not crossed out) cells.
<u>Explanation:</u>
The second step in the lowest cost method is to allocate as many units as possible to that cell (having the lowest cost) without exceeding the supply or demand.
Then cross out the row or column (or both) that is exhausted by the assignment made. These two steps are further repeated until all the assignments are made and the total cost of transportation is calculated at the end.
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