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

Process Layout, Assignment of Process layout of any company

Assignment of Process layout of any company

Explain how would they be measured, Based on the description of Coyote Comm...

Based on the description of Coyote Community College and its environment, what specific types of measures should they include in each of their perspectives of the balanced scorecar

What is an operation setback chart, An operation setback chart _____. is...

An operation setback chart _____. is based on lead times that typically include move and queue times and indicates a schedule for when to make a part. is a schedule for when

Grumbling and unhappiness regarding arrangement changes, You are the manage...

You are the manager for ABC Company. You are planning to change the arrangement and design of the offices and work stations on your floor. This means your employees will have to re

Why lower cost gives advantage over competitors, If you were marketing a lo...

If you were marketing a lower cost ($20-$50) product in a highly competitive field, which of the four Ps would you prefer to have an advantage over your competitors, and why?

Explain the expected rate of return, Debt: Jones Industries borrows $6...

Debt: Jones Industries borrows $600,000 for 10 years with an annual payment of $100,000. What is the expected interest rate (cost of debt)? Internal common stock:

Regarding process improvement, During the analysis of a process that was ev...

During the analysis of a process that was evaluated, it was seen that the variability was non-random on several occasions, i.e, it did not meet acceptable quality standards. Howeve

In detail identify three other supply chain issues, a) Determine the total ...

a) Determine the total cost (purchase price + delivery cost) to make a Blaster unit using these woofer and tweeter components and each delivery combination option? W1 & T1: W2 &

Why knowledge is vital supervisor''s tactical planning, Why should a first-...

Why should a first-line supervisor understand the organization's objectives? Why is this knowledge important to the supervisor's tactical planning?

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