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The NW corner rule described earlier considers only the availability and supply requirements in making assignments. It takes no account of the shipping costs given in the tableau. It is therefore not a sound methods as it ignores the very factor (cost ) which is sought to be minimized. The least cost methods and the Vogel Approximation methods consider the transportation costs while making allocations.
As the name suggests of all the routs ( that is combination of sources and destination) select the one where transportation cost is the least. Now consider the supply available at the corresponding source and demand at the corresponding destination and put the lower of the two as the quantity to be transported through that route. After this delete the source destination whichever is satisfied. Consider the remaining routes and again choose the one with the smallest cost and make assignments. Continue in this manner until all the unit are assigned.
max z 60x1+50x2 Sab to 4x1+10x2 2x1+2x2 3x1+2x2 X1+x2. >_ o
meaning,significance of operations research in bussiness management?
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Operations research is used by manager in making business decisions. What are five each of its merit and demerit that the users need to be aware of?
Normal 0 false false false EN-IN X-NONE X-NONE PROBABILITY DISTRIBUTION
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