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

MBA, MBA, Operation Management Q3. What do you understand by “line balancin...

MBA, Operation Management Q3. What do you understand by “line balancing”? What happens if balance doesn’t exist?

Explain sexual assault prevention and response, What impact do you think th...

What impact do you think that the DODs new Sexual Assault Prevention and Response (SAPR) program will have on the culture and the historic problems of sexual assault/harassment and

Explain competitors seem strongest against google, Goggle's Strategy 2010: ...

Goggle's Strategy 2010: Which of the five competitors seem strongest against Google? Weakness? What is your assessment of overall industry attractiveness?

Explain team prior to raising a follow-on fund, How should foster position ...

How should foster position herself and her team prior to raising a follow-on fund?

Explain what is the multifactor percentage change in product, 1. Long Beach...

1. Long Beach Bank employs three loan officers, each working eight hours per day. Each officer processes an average of five loans per day. The bank's payroll cost for the officers

Explain traditional inventory models, The information technology department...

The information technology department of State University buys paper for its copier machine frequently. The office manager would like to determine the best quantity to order each

Calculate the standard time for the job, An  industrial  engineer  has obta...

An  industrial  engineer  has obtained the  following data  in connection  with a  time  study on  the lines  of the Hawthorne  studies  taking  four different  elements  and five

Explain what will be her new productivity, Lori produces "Final Exam Care P...

Lori produces "Final Exam Care Packages" for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages. a) What is Lori's productivit

Explain contemporary strategy analysis, Ford's (Case 4) challenge in meetin...

Ford's (Case 4) challenge in meeting the needs of shareholders versus stakeholders. What ethical challenges and dilemmas might this pose? How should a corporate strategy be adju

Advantage of least cost method, Advantage of Least Cost Method a.      ...

Advantage of Least Cost Method a.       This method   provides accurate solution as transportation cost is consider while making  allocation. b.      It is very simple  and

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