Vogel's Approximation Method (VAM) is one of the conventional methods that gives better Initial Basic Feasible Solution (IBFS) of a Transportation Problem (TP). This method considers the row penalty and column penalty of a Transportation Table (TT) which are the differences between the lowest and next lowest cost of each row and each column of the TT respectively. In a little bit different way, the current method consider the Average Row Penalty (ARP) and Average Column Penalty (ACP) which are

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... he averages of the differences of cell values of each row and each column respectively from the lowest cell value of the corresponding row and column of the TT. Allocations of costs are started in the cell along the row or column which has the highest ARP or ACP. These cells are called basic cells. The details of the developed algorithm with some numerical illustrations are discussed in this article to show that it gives better solution than VAM and some other familiar methods in some cases.