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

Compute present value of cash flow stream by interest rates, Calculate the ...

Calculate the present value of the cash flow stream in problem 2 with the following interest rates- 1. Year 1 = 8% 2. Year 2 = 6% 3. Year 3 = 10% 4. Year 4 = 4% 5. Year 5 = 6% 6. Y

Explain the essence of project management is risk management, Consider the ...

Consider the following statement: "The essence of project management is risk management." What does it mean in terms of completing a project successfully? Support your response wit

Finite loading and infinite loading, Finite Loading and Infinite Loading ...

Finite Loading and Infinite Loading Finite Loading Loading procedures are categorized as either finite loading or infinite loading. In finite loading jobs are assigned t

Explain legal and compliance policies and practices, What are Apples Inc.? ...

What are Apples Inc.? Legal and compliance policies and practices. Elaborate and comprehensive on your response

Explain the constitutional law theory, Here is a situation for Don and Joan...

Here is a situation for Don and Joan who are partners for a vending cart business, which sells hotdogs on the street. Joan and Don received a mailed notice from the City of Richmon

Explain what is the college education fee, On the day his son was born, a f...

On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th b

Explain what appears to be the primary supply chain, What appears to be the...

What appears to be the primary "secret" of successful supply chain management?

Most vital factor in determining a company''s unit sales, Which of the foll...

Which of the following is the most important factor in determining a company's unit sales and market share of private-label footwear in a particular geographic region? a The len

Vogel''s approximation method (VAM), if minimum cost is same for two cell t...

if minimum cost is same for two cell then which one to give preference in step 3 of this page http://www.expertsmind.com/learning/vogels-approximation-method-vam-assignment-help-

E-business, E-Business, Knowledge Management and Globalisation of Services ...

E-Business, Knowledge Management and Globalisation of Services Development of supply chains not only in manufacturing but service companies; centralised decision making; exten

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