Modified distribution methods, Business Management

Assignment Help:

Step 1: Add to the transportation table a column on the E? HS titled u and row in the bottom of it labelled v.

Step 2:

a. Assign any value arbitrarily to a row or column variable u i or vj. Generally a value o ( zero) is assigned to the first row i,e, u 1 = 0

b. Consider every occupied cell in the first row individually and assign the column value vj( when the occupied cell is in the column of the row) which is such that the sum of the row and the column values is equal to the unit cost value in the occupied cell. With the help of these values consider other occupied cells one by one and determine the appropriate values of taking in each case u1+ vj= cij. Thus if ui is the row value of the row and vj is the column value of the column and cij is the unit cost of the cell in the row and column then the row and column values are obtained using the followings equation.

U i + Vj = Cij

For this  solution let U1 =0  using  equation given  earlier we have  for the occupied  cell( 1 ,1) U1+  V1= C11, OR 0 + V1= 6 OR V1= 6

Similar  U1 + V2 = C12 OR 0 + V2 = 4, OR 4 With  V2 =  4 ,we get  U2= 4( : U2= + 4 = 8)  and U3= 0. From U3= 0  we get V3 = 2. The  is how  Ui values  of 0, 4,and o and Vj values  of 6  4and  2 are  determined.

Step 3: Having  determined  all Ui and Vj  values  calculate for each  unoccupied cell Δij = Ui + Vj - Cij. The Δ ij represent the opportunity costs  of various  cells. After obtaining  the opportunity costs  proceed in the same way as in the stepping  stone method. If  all the empty cells have negative opportunity costs  the solution  is optimal and unique. If some  empty cell(S) has a zero  opportunity  costs   but if non of the other empty cells have positive opportunity cost then it  implies  that the  given  solution  is optimal but that  it is not  unique there exists  other  solution  that would  be as good  as this  solution.


Related Discussions:- Modified distribution methods

Explain about the preparation and analysis of balance sheet, Explain about ...

Explain about the preparation and analysis of balance sheet. Preparation and Analysis of Balance Sheet: Balance Sheet is one of the significant financial statements of a

Electronic purchase orders, QUESTION 1 (a) Requirements engineering is ...

QUESTION 1 (a) Requirements engineering is the process of discovering, documenting and maintaining a set of requirements for a computer - based system. What are requirements?

Necessity of permitting workers to participate in management, What is the o...

What is the objective or necessity of permitting workers to participate in management? The objective or the necessity of allowing workers to participate within management can b

Functions of management, various function of management that constitute pro...

various function of management that constitute process of management

Reducing balance method and straight line method, Satine Enterprise Ltd. ...

Satine Enterprise Ltd. a) Reducing balance method: Year Depreciation Net Book Value 0 0 $25,000

Explain the importance of conducting business meetings, Question 1: (a)...

Question 1: (a) In most business organisations, communication will flow: 1. Upwards 2. Downwards 3. Horizontally Briefly describe each of the above communication flows.

How e-crm may help to attract more customers, CASE STUDY: ICT-DEPLOYMENT AT...

CASE STUDY: ICT-DEPLOYMENT AT THE LOW-COST CARRIER RYANAIR, IRELAND Abstract The innovative use of information technology for online booking, e-ticketing and internal comm

MISS, DISCUSS THE LAYOUT OF THE WORK SPACE TO PREVENT ACCIDENTS AND INJURIE...

DISCUSS THE LAYOUT OF THE WORK SPACE TO PREVENT ACCIDENTS AND INJURIES?

Discuss the functions of a theory in communication, QUESTION 1 What acc...

QUESTION 1 What according to you are the essentials of effective communication? QUESTION 2 List out and discuss the various factors that affect communication. QUEST

The way of successful communication, Describe any situation in your experie...

Describe any situation in your experience where the communication was a failure. Analyze the barrier(s) which stood in the way of successful communication. Explain how you would ov

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