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 demand for each season is going to be, In the past, Arup Mukherjee'...

In the past, Arup Mukherjee's tire dealership in Pensacola sold an average of 1,000 radicals each year. In the past 2 years, 240 and 260, respectively were sold in fall, 360 and 30

Priority sequencing, Priority Sequencing In sequencing jobs on machine...

Priority Sequencing In sequencing jobs on machines on one the process time of each job and their due dates of delivery are required. A priority rule is then decided upon in or

Process capability - statistical process control, Process Capability - Stat...

Process Capability - Statistical Process Control The controls charts described so far are concerned with maintaining the stability of a process, but they offer no comment on

Develop a spreadsheet model as well corresponding data table, The circulati...

The circulation manager of The New York Times in State College, PA is trying to decide how many copies of the upcoming Sunday edition of the paper to order so as to meet the demand

Explain differences create a problem for the acquiring firm, Suppose a Brit...

Suppose a British computer firm is acquiring a smaller competitor located in Frankfurt, Germany. What are two likely differences in the way these two firms carry out the decision m

Find the specific challenges with overlapping, Explain in detail the greate...

Explain in detail the greatest challenge facing law enforcement agencies in investigating exploitation, cyber stalking, and obscenity. Identify the specific challenges with overlap

Explain secondary data are the, Secondary data are the facts and figures...

Secondary data are the facts and figures that are newly collected for the project at hand. facts and figures obtained by watching people mechanically rather than in person.

Explain the market testing stage of the new-product process, The market tes...

The market testing stage of the new-product process often involves test markets or purchase laboratories in which the dependent variable is consumer attitudes. price. adve

Transportation cost, a. Assign any value arbitrarily to a row or column var...

a. Assign any value arbitrarily to a row or column variable u or v j . generally a value 0 zero (zero) is assigned to the first row i, e, u = 0. b.Consider every occupied cell

Explain pros and cons regarding the theories of motivation, What are the pr...

What are the pros and cons regarding the theories of motivation?

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