Least cost methods, Operation Management

Assignment Help:

At any stage if there is a tie in the minimum cost so that two or more routes have the same least cost of transportation then conceptually either of them may be selected. However a better initial solution is obtained if the route chosen is the one where largest quantity can be assigned. Thus if there are three cells for which the least cost value is equal then consider each one of these one by one and determine the quantity ( by ) reference to the demand and supply quantities given which can be despatched and choose the cell with the largest quantity. If there is still a tie then either of them may be selected.

To begin with the lowest of all cost elements is 1 for the by with corresponding supply and demand being 24 & 12. According assign 12 to this cell delete the Colum and reduce the quantity available to 12. The next cost is Rs. 2 in cell BX, DX, AY, AZ. But we cannot allocate to cell BX as the demand for B is exhausted. Now we see that demand of cell AY i ,e, 13 is more than available supply of 24-12 = 12 units. For cell DX demand 19 is greater than supply 15 and for cell AZ 13 is less than supply 21. Out of these maximum amount of 15 units can be allocated to cell DX only. So we choose cell DX and allocate 15 units to it. Delete the row headed X as well and adjust the available demand at D to 4.


Related Discussions:- Least cost methods

Explain what are different ways to test would it works, 1) One change metho...

1) One change method is to encourage testing activities throughout the change process. "Piloting" ideas throughout the change process gives opportunities that are safe to challenge

Explain the service process design, Review the "Noodles and Company - Servi...

Review the "Noodles and Company - Service Process Design" Could Noodles restaurant's service operation be successful by combining the characteristics of the three contrasting servi

Design of work systems, A worker machine operation was found to involve 3.5...

A worker machine operation was found to involve 3.5 minutes of machine time per cycle in the course of 40 cycles of stopwatch study. The workers time averaged 2.3 minutes per cycle

Describe in terms of developing a project plan, In terms of developing a pr...

In terms of developing a project plan, specifically recommend how this resource could expedite that process.

Problem, a firm isconsidering replacement of a machien, whoes cost price is...

a firm isconsidering replacement of a machien, whoes cost price is rs 12200 and scrap value is rs 200 the running cost is rupee given below year running cost 1 200 2 50

Explain the probable destiny of lee peterson''s company, Consider this: Lee...

Consider this: Lee Peterson has invented a new product that detects water leaks due to broken pipes and sends out an alarm similar to a smoke alarm. However, Lee has very little pe

How is service separated from the person who gives this, How is service sep...

How is service separated from the person who provides the service? Services frequently cannot be separated through the person who gives the service: a. Every time the servic

Explain what is controlling, Explain what is Controlling. Controlling i...

Explain what is Controlling. Controlling is defined as which managerial function that seeks to ensure an absolute conformity of actual performance through organizational person

Illustrate performance dimensions for operational strategy, Illustrate the ...

Illustrate the performance dimensions for operational strategy? Performance dimensions for operational strategy: • Quality for illustrations Marks and Spencer, Thornton’s,

Explain employment eligibility, Prospective employers can conduct a credit ...

Prospective employers can conduct a credit check along with a background check to determine employment eligibility. Do you feel this is good business practice or an invasion of pri

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd