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 pernille spiers-lopez''s individual characteristics, Complete the L...

Complete the Leadership in Action Ikea case on page 142-143 in your textbook on pernille spiers-lopez assembles a winning team at ikea .Answering the case questions involves ident

Innovation and learning perspective - performance measures, Innovation and ...

Innovation and Learning Perspective - Performance Measures In this perspective, the company emphasises the design and application of business management initiatives that foste

What leadership is give answer in thirty seconds, If someone asked you to t...

If someone asked you to tell them what leadership is, and you only had thirty seconds to answer, what would you say?

In selecting a foreign market the importance of the priority, In selecting ...

In selecting a foreign market, a screening process is used by a firm. In regard to this process, answer the following: a) The importance of the priority order of the steps in t

Ppc in mass and flow production system, PPC in Mass and Flow Production Sys...

PPC in Mass and Flow Production System Continuous  production  is the  specialized  manufacturing  of identical  articles on which  the equipment  is  fully  engaged. Continuo

Explain why do resource constraints affect project results, Explain work br...

Explain work breakdown structure. Why do resource constraints affect project results?

Connected flow and disconnected flow system, Connected Flow and Disconnecte...

Connected Flow and Disconnected Flow System Such systems deliver very low unit costs, they are vulnerable; because of the absence of work-in-progress buffers, if one process f

Compute the start and finish times for each activity, Calculate the start a...

Calculate the start and finish times for each activity and determine the minimum number of weeks for completing the project. Find the critical set of activities for the project.

Understanding or knowing customer - customer satisfaction, Understanding or...

Understanding or Knowing Customer - Customer Satisfaction and Service Quality Involves making the effort to understand the customer's needs. It involves: learning the customer

Productivity in the service sector, Productivity in the Service Sector ...

Productivity in the Service Sector We know that the challenges for operations managers in future will lie in increasing the productivity of the service sector. As agriculture

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