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Consider the following conditions:

  1. The solution must be feasible, i.e. it must satisfy all the supply and demand constraints
  2. The number of positive allocations must be equal to $m+n-1$, where $m$ is the number of rows and $n$ is the number of columns
  3. All the positive allocations must be in independent positions

The initial solution of a transportation problem is said to be non-degenerate basic feasible solution if it satisfies:

  1. $i$ and $ii$ only
  2. $i$ and $iii$ only
  3. $ii$ and $iii$ only
  4. $i$, $ii$ and $iii$
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all conditions must be true (all these are basic constraints)

hence ans is D
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