Vogel's method selects the corresponding variable through a penalty. There is a penalty for each row and column and is the subtraction between the two lowest costs (in absolute value).
We must select the highest penalty and then the lowest cost in the row or column of this penalty. I understand the second step (if you want to reduce the cost of the problem, you select the lowest cost of the row or the column), but not the first.
I don't understand why we have to do the subtraction between the two lowest costs and, then, select the highest penalty. Can someone tell me what the explanation is?
It's a procedure.
We can choose minimum penalty also.