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

What are the impact on the project parameters, Your team is working on the ...

Your team is working on the opportunity assessment when you are notified there will be room on the agenda of the senior executive monthly meeting for you to present your results. T

Explain communication behaviours destroy trust, One of the most important f...

One of the most important factors determining whether organizations and their members will be high performance is the presence of trust between leaders and followers. What types of

Difference between production planning and control, Difference between prod...

Difference between production Planning and Control Many people are of the view that production planning embraces both planning and control. In the broader sense, production pla

Explain your role as an employee of an organization, Describe your role as ...

Describe your role as an employee of an organization in the IS field. Give examples of what you need to know about information systems and how it can help with your job performance

Explain best leverage the federal registers website, Analyze the ways in wh...

Analyze the ways in which managers could use the Federal Register to determine the single most significant challenge associated with its use, and how managers could address that ch

Performance dimensions common in service than manufacturing, 1. Name some p...

1. Name some performance dimensions more common in service than manufacturing operations.  Answer: These are the dimensions listed. Services tend to be more intangible and tailo

Explain same day delivery manufacturing process, Describe FedEx Office and ...

Describe FedEx Office and Same Day delivery manufacturing process and scheduling approach

Explain strategic decisions influence the power of the party, Determining t...

Determining the bargaining unit occurs before certification is obtained whereas determining the bargaining structure occurs after, but both strategic decisions influence the power

Mis, mis in decision making

mis in decision making

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