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 production and shipping costs, Blue Computers, a major PC manufactu...

Blue Computers, a major PC manufacturer in the United States, currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year and the

Define spread spectrum signalling over narrowband signalling, Which of the ...

Which of the following is an advantage of using spread spectrum signalling over narrowband signalling? a. Spread spectrum is easier to install b. Spread spectrum is more secu

Explain all the principles of organization, Explain all the principles of o...

Explain all the principles of organization. Principles of Organization: Organization is a structure or mechanism which enables living things to work efficiently together.

Explain what opportunities in the marketing environment, What opportunities...

What opportunities in the marketing environment did Gannet seize in launching USA? What unmet benefits are added and what value is created for the customer by USA Today?

Explain describe your findings as frequencies, Poll a small sample of class...

Poll a small sample of class members, work associates, or friends and ask them to answer the following in a paragraph or two: "What are your career aspirations for the next five

Time study - process design, Time Study - Process Design Time study by...

Time Study - Process Design Time study by stopwatch or micro-motion analysis is the original method of work measurement devised by Taylor and his followers, and is still routi

Explain the decision-making view, Describe the decision-making view and the...

Describe the decision-making view and the process view of operations management. Why are both views useful in studying the field of operations management?

I have some charts that i need help to put it in excel, I have soem charts ...

I have soem charts that were done i word how do I gt them to you for someone to put in excel for me

Writing a problem statement, I want help on writing a problem statement for...

I want help on writing a problem statement for my project...

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