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

Question eXAM, Defining Operation Management Operations performance...

Defining Operation Management Operations performance Function of operations Evolution of operations management E-business Integrated value c

Explain largest category of households, By 2015, projections indicate that ...

By 2015, projections indicate that the largest category of households will be composed of a. childless married couples and empty nesters b. singles living with non

Production control, Production Control Meaning and Definition ...

Production Control Meaning and Definition Production control involves implementation of production plans or schedules by coordinating different activities. It seeks to

Explain what does the project portfolio illustrate, What does the project p...

What does the project portfolio illustrate? How might it be useful to management?

Describe switch read in order to find the mac address, What part of a packe...

What part of a packet does a switch read in order to find the MAC address?

Explain what are supply-chain management strategies used, What are at least...

What are at least four supply-chain management strategies used in Regal Marine? Present and explain them.

Performance dimensions common in service than manufacturing, 1. Name some p...

1. Name some performance dimensions more common in service than manufacturing operations.  Answer: These are the dimensions listed. Services tend to be more intangible and tailo

Define manager can ever give up responsibility for an action, The about whe...

The about whether or not a manager can ever give up responsibility for an action to someone who reports to them as opposed to another manager at their level? And Why?

Capacity planning and controlling, #theories and techniques can help if app...

#theories and techniques can help if applies properly.

Explain alternatives favourable market unfavourable market, Karen Villagome...

Karen Villagomez, president of Wright Industries, is considering whether to build a manufacturing plant in the Ozarks. Her decision is summarized in the following table: Alternativ

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