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

Simulation problem, neater eater hamburger joints frequency distribution op...

neater eater hamburger joints frequency distribution operation research problem

Explain project charter is to help the project team, One purpose of the pro...

One purpose of the project charter is to help the project team and the project sponsor to commit to the project

Describe corporate strategy and ethical issues, Discuss corporate strategy ...

Discuss corporate strategy and ethical issues surrounding a human resource strategy cantered around hiring software engineers on work visas at equivalent salaries or sourcing engin

Explain why has globalization become so important, What specific challenges...

What specific challenges P&G and Colgate-Palmolive face, and why has globalization become so important to them?

Explain what pay level does the efficiency wage predict, What pay level doe...

What pay level does the efficiency wage predict? Does the theory accurately predict organization behaviour? Why or why not

., define the following key terms in product layout;product interval,produ...

define the following key terms in product layout;product interval,product duration and assembly line balancing

Explain what is the cost associated, Your company, ABC Company, uses 100% i...

Your company, ABC Company, uses 100% inspection for all materials and requires zero defect quality of all its vendors. If bad parts are found, it cost $1.00 per part to inspect the

Explain developing a risk matrix, How would you go about developing a risk ...

How would you go about developing a risk matrix? Give an example of the kinds of factors that should be evaluated.

Explain what is the multifactor productivity for each system, A grocery cha...

A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new self-checkout lane setup will replace 2 old cashier lanes that were staffed by a cashier

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