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 will any action notices be generated, The MPS for product A calls f...

The MPS for product A calls for 100 units to be completed in week 4 and 200 units in week 7 (the lead time is 1 week). Spare part demand for Item B is 10 units per week. The bill o

Determine the process capability indices and p chart control, 1. If the des...

1. If the design tolerance limits for the process are 9.7/11.2, determine the process capability indices C p and C pk . Comment on the values obtained.  2. 1000 items produced

Explain standard and superior materials, 4 Which of the following best desc...

4 Which of the following best describes the materials the company uses to make its footwear? a Synthetic fibers, waterproof polyesters, microfibers, rubber, and metal eyelets

Ethics, An airplane manufacturer has spent a great deal of money developing...

An airplane manufacturer has spent a great deal of money developing a new airplane. The company badly needs cash because it is financially overextended. If it does not get large or

Describe how to create a work breakdown structure, Final Paper The final si...

Final Paper The final six to eight page paper must demonstrate understanding of new learning in the field of project management. It is mandatory to have research from the classroom

Product interval time, what is product interval time product duration?

what is product interval time product duration?

Explain what is a learning organization?, Q1. What is a learning organizati...

Q1. What is a learning organization? Q2. 1. "JUST DO IT" advertisement for Nike. What is the marketing purpose of this slogan? Is this slogan effective? 2. "DAIMONDS ARE FORE

Determine the standard time, An 8 hours work measurement  study  in a plant...

An 8 hours work measurement  study  in a plant reveals the following : Units  produced= 320 nos. Idle  time = 15%  performance rating-= 120% . allowances  = 12% of normal  time. De

Design a operations management system, The purpose of operations management...

The purpose of operations management is to make the best use of productive resources. It entails the design and control of all the systems for the productive use of various raw mat

Explain interest and estimate its usefulness to the project, Office Suite p...

Office Suite programs identify the resource that caught your interest and estimate its usefulness to the project management profession.

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