Also known as the method of simplex multipliers or the u-v method, MODI is a tailored version of the simplex method for the transportation model. MODI determines whether a basic feasible solution is optimal or not, and if not, identifies the entering variable by following these steps: 1. Denote the simplex multipliers, ui for each row and vi for each column alongside the transportation tableau 2. Write down the equations ui + vi = cij for each basic variable xij 3. Set one of the multipliers to zero and find the values of other multipliers on this system of equations 4. Calculate the values of cij – (ui + vi ) for each non-basic variable 5. If any of these values is greater than or equal zero, then the solution is optimal 6. If not, the non-basic variable that has the most negative value is the entering variable. The correct answer is C.