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

Descibe the stages of contract formation, Maria, who lives in Seattle, sent...

Maria, who lives in Seattle, sent Koji a letter via first class mail, stating, "Koji, I think your 2003 Ford SUV is worth $20,000. I will give you $20,000 cash for it." Koji receiv

Explain different levels of diversification firms, What are the different l...

What are the different levels of diversification firms can purpsue by using different corporate level strategies and what are the advantages to diversifying their operations?

Explain always better control analysis of inventory control, Explain Always...

Explain Always Better Control analysis of inventory control. ABC Analysis of Inventory Control: ABC analysis is the extensively used approach for classifying the inventories

Describe main motivational theories described in the text, There are a vari...

There are a variety of theories of motivation, many of which are complementary. Of the main motivational theories described in the text, which theory or theories do you think would

Operations and production management , OPERATIONS AND PRODUCTION MANAGEMENT...

OPERATIONS AND PRODUCTION MANAGEMENT   Production and operation management (POM) is defined as the design operation, and enhancement of the transformation process which converts

Describe census of population as a measure of education, 1. Education is of...

1. Education is often used as an indicator of a person's socioeconomic status. Historically, the number of years of schooling completed has been recorded in the census of populatio

Explain operations management, How do I find solutions to questions in oper...

How do I find solutions to questions in operations management 10th edition by jay heizer?

Explain how might you prevent and fix such issues, Finding solutions to pro...

Finding solutions to problems is affected by how one frames the problem. In other words, what one thinks is wrong will influence what one believes the available solution(s) to be.

Use cases, A case study presents an account of what happened to an organisa...

A case study presents an account of what happened to an organisation or business over a period of time. It chronicles the events that occurred within that organisation and which th

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