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 suppose you run hr at a large organization, Suppose you run HR at a...

Suppose you run HR at a large organization. How will you determine supply and demand? How will employee turnover factor into your decisions? Suppose you want to retain your two

Explain participation of workers in management, Explain Participation of wo...

Explain Participation of workers in management. Workers' Participation in Management: Participation of workers in management can be in any shape, from establishing work-commi

Explain hidden-camera videos used to promote coke zero, Why do you think th...

Why do you think that the hidden-camera videos used to promote Coke Zero were an effective way to reach its target market? Do you think a similar strategy with a viral marketing ca

Explain most apprenticeship programs are in skilled trades, 1. Which one of...

1. Which one of the following statements is NOT true of apprenticeships? Most apprenticeship programs are in the skilled trades. A major advantage of apprenticeships is the a

Explain fatigue and delay, a. You are chartered to set a time standard for ...

a. You are chartered to set a time standard for a worker assembling 96 piece jigsaw puzzles. The following times have been collected from five different operators with one observat

Simulation, Which of the following distributions cannot be simulated a) U...

Which of the following distributions cannot be simulated a) Uniform b) Poisson. c) Normal. d) All of these can be simulated.

Explain how compensation information is tracked, 1) An organization followi...

1) An organization following a differentiation strategy would most likely offer a compensation mix which was made up of: a. performance bonus. b. comprehensive benefits. c

Factors responsible for plant location choice, Factors Responsible for plan...

Factors Responsible for plant Location choice The physical factors associated with location of an enterprise can have a significant impact on the operations of an enterprise a

Design methods, Computer-Aided Design is one of the techniques used by Rega...

Computer-Aided Design is one of the techniques used by Regal Marine in the manufacturing of boats. With the aid of examples, critically discuss FIVE (5) techniques that are import

Compute the exact times that each will begin, Two law students, John and Ma...

Two law students, John and Marsha, are planning an all-nighter to prepare for their law boards the following day. Between them they have one set of materials in the following five

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