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

Formulation of a service operations strategy, 1. What issues are raised by ...

1. What issues are raised by this case in relation to the formulation of a service operations strategy? Answer: This example raises interesting questions relating to service str

Case Study, After working for 30 years, Ramjee Somjee Dutt opted for VRS an...

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did very well in the first four years. He was now looking for expansion of his busine

Explain what is the minimum number of workstations output, An assembly line...

An assembly line with a number of tasks is to be balanced. The sum of the task times is 100 minutes. The line will operate for 7 hours per day. What is the minimum number of wor

What are the assumptions of economic order quantity, What are the assumptio...

What are the assumptions of Economic Order Quantity? Assumptions of Economic Order Quantity (EOQ): a. The stage of customer demand is identified b. The stage of customer

Explain higher level of economic performance, Can someone help me figure th...

Can someone help me figure this one out? Which firm will have a higher level of economic performance? a) A firm with valuable, rare, and costly to imitate capabilities competing in

Explain the smallest index rule to find the optimal tableau, Consider the L...

Consider the LP z¤ = max x1 + x2 + 2x3 s.t. x1 + 5x2 + 4x3 • 60 2x1 + 3x2 + 2x3 • 90 xi ¸ 0 8 i = 1; :::; 3: (a) Use the simplex method and follow the smallest index rule to f

What is the distinction between prediction and forecasting, Question 1: ...

Question 1: Show the nature and importance of the four logistics-related elements of customer service. Question 2: (a) Describe the concept of supply chain management.

Explain inventory decreases, What happens to inventory as the number of kan...

What happens to inventory as the number of kanban cards increases? Inventory decreases Inventory increases Inventory remains the same The number of kanban cards has no

Why needed physicians and licensed independent practitioners, Why do you th...

Why do you think health care organizations are held accountable for ensuring the competence of their physicians and licensed independent practitioners?

Explain decision making under uncertainty, Even though independent gasoline...

Even though independent gasoline stations have been having a difficult time, Susan Helms has been thinking about starting her own independent gasoline station. Susan's problem is 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