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

Why is cutting cost an merit of reducing project scope, Why is cutting cost...

Why is cutting cost an advantage of reducing project scope? Need at least a paragraph

Explain how you would use situational leadership, Describe how you would us...

Describe how you would use Situational Leadership to diagnose the situation and identify the appropriate leadership style.?

Explain consumer price index, What are some characteristics and provisions ...

What are some characteristics and provisions of the cost of living escalator clauses and wage reopener arrangements that are part of the unions' efforts to adjust to the lack of de

Explain is the value of the educational programming, Is the value of the ed...

Is the value of the educational programming provided to hospitals and schools worth the price of the commercial messages that accompany it?

Case study on back unopened book for a refund, I recently rented a book and...

I recently rented a book and it turns out that I no longer need to be in the class that requires that book. The book just got here today and I have not opened the package at all. I

Operation strategy in organisations, Operation Strategy in Organisations ...

Operation Strategy in Organisations 1. There are three schools of thought in strategic thinking: rationalist, evolutionist and some combination of both.  2. There are multi

Describe the difference between trait-oriented appraisals, Describe the dif...

Describe the difference between trait-oriented and results-oriented performance appraisal instruments, identifying some of the instruments used in each case.

What are the demand management strategies, What are the demand management s...

What are the demand management strategies? Demand management strategies: It is aims to affect customer demand levels at exact times, so as to match demand closer to the o

Performance and productivity measurement, Task 1 Read: Chapter 7 of the cor...

Task 1 Read: Chapter 7 of the core learning material and supporting text chapters on Performance Measurement. Task 2 Investigate: Either investigate the performance measurement

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