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Two methods have been used extensively for arriving at initial basic feasible solution (IBF). One of them is Northwest corner rule and the other on is Russell method (Hillier & Lieberman, 2005.) Both methods have drawbacks. The IBF obtained is either far from optimal solution or does not have adequate number of entries to initiate transportation simplex algorithm. The Northwest Corner rule gives an initial feasible solution that is far from optimal while the IBF solution obtained using Russell method doesn’t give enough number of entries to start the transportation simplex algorithm. Hence, there is a need for developing a method for arriving at initial basic feasible solution with adequate number of entries needed to initiate transportation simplex algorithm, which can then be used to get an optimal solution. A computer software has been developed based on the new proposed method for this purpose. The proposed new method has been validated through four simple but illustrative examples.