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

Volume flexibility - customers needs for a product, Volume Flexibility - Cu...

Volume Flexibility - Customers Needs For a Product The readiness with which the operation systems output can be adjusted in response to sharp changes in customer demand. Produ

Explain how many observations would be needed, To determine the standard wo...

To determine the standard working time for a special job, following observation data is collected: Observation 1 2 3 4 5 6 7 8 Time (in second) 17 18 15 14 13 15 16 13 a) If the pe

Explain what are the four major goals for it, What are the four major goals...

What are the four major goals for IT? How are the four goals achieved? How does the integration of IT improve the management of supply chains?

Explain efficiently report of schedule of a project, Illustrate how to effe...

Illustrate how to effectively and efficiently report on the schedule of a project to the different stakeholder groups. Show calculations and provide rationale for each strategy.

Customer interface, as a customer service employee to university explain me...

as a customer service employee to university explain measures you would recommend to make even displeased student to patronise the school canteen

Calculate the normal time for the job, A work  sampling  study  is to  b...

A work  sampling  study  is to  be made of a typist  pool. It is  left that  typists are idle  30 % of the  time. How many observations  should  be made  in order  to  have 395.5%

Explain how many cords of wood would he have to split, The owner of Firewoo...

The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood

Explain skilled nursing care, A nursing home contracts with an HMO for skil...

A nursing home contracts with an HMO for skilled nursing care at $2.00 PMPM. If costs are expected to average $120 per day, what is the maximum utilization of days per 1,000 member

Explain the high physical demands of the job, The Dubuque Cement Company pa...

The Dubuque Cement Company packs 80-pound bags of concrete mix. Time-study data for the filling activity are shown in the following table. Because of the high physical demands of t

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