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 why employees steal property, Discuss what you think are FOUR (4) r...

Discuss what you think are FOUR (4) reasons why employees steal property (office supplies, petty cash, cheat on travel expense reports, parts/ equipment, embezzle money) from their

Process capability - statistical process control, Process Capability - Stat...

Process Capability - Statistical Process Control The controls charts described so far are concerned with maintaining the stability of a process, but they offer no comment on

Activities and types of scheduling, Activities and Types of Scheduling ...

Activities and Types of Scheduling Scheduling includes the followings activities 1. Allocation of quality and rate of output of the plant or department. And 2. Allocation

Explain impact an organizations ability to compete, Why are aggregate and s...

Why are aggregate and succession planning of critical importance? How might failures in these areas impact an organizations ability to compete? Be specific

Process design, what is process design in operation management

what is process design in operation management

Force-field analysis - improving productivity, Force-field analysis - Impro...

Force-field analysis - Improving Productivity  Force-field analysis is based on the concept that any given level of productivity is the result of an equilibrium between drivi

Explain competitive strategy relate to value chain structure, How does comp...

How does competitive strategy relate to value chain structure?

Explain the method of job evaluation, Explain the method of job evaluation....

Explain the method of job evaluation. Method of job evaluation: Following are the methods wherein job evaluation is done:- a) Ranking method. b) Classification method.

Explain the aspects of the proposed new business, Using the information pro...

Using the information provided, prepare the report that Vicky Roberts requested, assuming that the project will begin immediately. Assume 45 working days are available to complete

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