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 can you be innovative in a mature industry, 1. How much of an impac...

1. How much of an impact does "maturity" level of the industry or company have on strategy? 2. Can you be innovative in a mature industry? 3. Can you be conservative in an in

Describe methods to diagnose employee stress, Discuss methods to diagnose e...

Discuss methods to diagnose employee stress and the specific OD (organizational development practitioner) interventions aimed at alleviating it in the workplace.

How business leadership accomplishing company objectives, Provide two examp...

Provide two examples of current leaders and describe how they demonstrate their leadership characteristics. What separates these characteristics from management techniques? How eff

How various 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

Explain google''s customer value proposition, Describe Google's customer va...

Describe Google's customer value proposition and profit formula linked to its business model. What strategies has Google relied upon to build competitive advantage in the industry?

Explain the four-step framework, Describe the four-step framework for one-t...

Describe the four-step framework for one-to-one marketing that can be adapted to CRM marketing?

Explain involuntary bankruptcy under the bankruptcy code, Samantha (Sam), a...

Samantha (Sam), a book dealer, has the following assets: a building worth $155,000, accounts receivable amounting to $32,500 due within the next three months, and $25,000 cash in t

Explain schematic model of the sequence, Which of the following models uses...

Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?

Explain what is the value of the coefficient, Forecasting 1. Briefly des...

Forecasting 1. Briefly describe when qualitative versus quantitative forecasting methods would be used? 2. Linear Regression. a. Describe what linear regression is and how

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