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

How several hours of production time would you schedule, For the four basic...

For the four basic configurations that follow, assume that the market is demanding product that must be processed by both Resource X and Resource Y for Cases I, II and III. For Cas

Various levels of customer service in your organization, Has the philosophy...

Has the philosophy that there are different levels of customers had any material effect on the value of your organization's customer service? • Identify and explain the differen

Explain diversified network, USAA, which provides financial services to mil...

USAA, which provides financial services to military officers by mail and telephone, is an example of a Answer focused service. Focused network. Clustered service. Diversified netwo

Explain what''s your opinion about compensation, 1. Does your company's com...

1. Does your company's compensation plans help to attract and retain people with the right skills, knowledge and motivation to help the company succeed? Explain. 2. Is your comp

How marketing consultant brought in to help a company, Imagine you are a ma...

Imagine you are a marketing consultant brought in to help a company who has a product that is so successful they cannot keep up with customer demand. What questions would you as

Compute the schedule variance or cost performance index, A project to build...

A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached wh

Explain why internal recruitment is the most effective way, Question 1: ...

Question 1: "Internal recruitment is the most effective way to obtain a skilled and knowledgeable workforce". Critically evaluate this statement. Question 2: Classroom

I want a professional plan for this school project, I need a professional p...

I need a professional plan for this school project on this company. (• A plan of viable business options for "Family Fabrics" • A summation of expected results. Fire destroyed t

Describe how the input from other areas into pac, 1. What is one of the key...

1. What is one of the key elements of an effective PAC system? Why is this element so important? 2. Explain how the input from other areas into PAC and the feedback PAC provides

Appropriate control limits for the data, A quality team at Milburn Textiles...

A quality team at Milburn Textiles has been charged with setting up control charts to monitor a key dyeing process that has been improved and now stable.  The ideal temperature for

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