Degeneracy in transportation problem refers to a situation where the basic feasible solution of a transportation problem has fewer than m+n-1 positive xij (occupied cells) . In other words, it occurs when the number of used squares is less than the number of rows plus the number of columns minus one. This can cause computational problems while determining the optimal minimum solution, but it does not cause any serious difficulty. To resolve degeneracy, an artificial quantity (d) is assigned to an unoccupied cell that has the minimum transportation cost. The value of d is assumed to be zero for calculation purposes. The use of d is known as the perturbation technique, and it helps to solve degenerate problems. Degeneracy can occur during the Northwest Corner Method or Vogel’s Approximation Method.