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

Describe you can conduct outside research to locate info, In a 1-2 page pap...

In a 1-2 page paper discuss the following case study by applying the knowledge you gained through this week's studies. If necessary, you can conduct outside research to locate info

Describe potential for increased profit, Which of the following is a criter...

Which of the following is a criterion used for selecting a target segment? Potential for increased profit Similarity of needs of potential buyers within a segment Differen

Explain how many crates will it need to plan, A bottling facility with an e...

A bottling facility with an effective capacity of 40,000 crates per day operates with an efficiency of 85%. How many crates will it need to plan for bottling on a day that requires

What are the inter-connect factors introduced by cousins, Q. What are the i...

Q. What are the inter-connect factors introduced by Cousins? Cousins introduced the following inter-connected factors to strategically affect supply chain management. The '

Business ethics and corporate social responsibility, Explain the relationsh...

Explain the relationship among 'Business Ethics' and 'Corporate Social Responsibility' Ethics may be viewed as a set of moral principles that guide behaviour, based on what is

Explain high quality information, Analysis: categorize the five common char...

Analysis: categorize the five common characteristics of high quality information and rank them in order of importance to carnival cruise.

Explain significant increase in employee theft, If Textile Manufacturing, I...

If Textile Manufacturing, Inc. reduces the hourly wages of its employees so that it can compete with imported clothing, it can anticipate a significant increase in employee theft o

Process capability index - asymmetrical positioning, Process Capability Ind...

Process Capability Index - Asymmetrical Positioning of the Process As stated earlier, the C p index assumes that the process mean is centred within the tolerance band, but, i

Opreation research modeling, Comment on this " model building is th...

Comment on this " model building is the excess of operation research

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