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 relationship of basic components of the organisation, Explain the r...

Explain the relationship of basic components of the organisation. Relationship of the fundamental components of the organization: Objectives as decided within step I abov

Cross-cultural management, Do you believe there are differences between cro...

Do you believe there are differences between cross-cultural management, international business, and international management? If yes, what are the differences? If no, why not? •

Determine way to measure business position, Portfolio approach provides a u...

Portfolio approach provides a useful tool for analyzing business performance. As a top manager of a multi-business firm, you apply such analytic skill to develop a GE multifactor p

Change focus on which subsystems in an organization, QUESTION 1 As indi...

QUESTION 1 As individuals, people possess different characteristics that either positively or negatively affect their attitude and behaviour. Identify and describe carefully in

How does scm help a company in gaining competitive advantage, QUESTION ...

QUESTION (a) After seeing the results obtained from table above, Ah Kong decides to implement an ERP system. List down two advantages and two disadvantages of implementing such

Explain how effective teamwork, QUESTION (a) Explain how effective team...

QUESTION (a) Explain how effective teamwork is beneficial to both the individual and the organisation. (b) Team leaders must be on the lookout for symptoms of ineffective te

Ricardian model and heckscher-ohlin model, 1. Wage ratios must lie in betwe...

1. Wage ratios must lie in between the inter-country productivity ratios. 2. Large countries are always less specialized. 3. Low wage countries have bigger gains from trade.

Process management, Process Management: Answer the following questions a...

Process Management: Answer the following questions as related to the process management: 1- What is race condition? Explain how can the semaphore be used to prevent it? 2-

The two-tier and three-tier web client-server architectures, QUESTION (...

QUESTION (a) Compare the two- and three-tier Web client-server architectures, and indicate the role of each tier in each architecture. Which architecture is the most likely can

Value chain analysis, Primary activities of a Hotel in value chain analysis...

Primary activities of a Hotel in value chain analysis.How a big hotel performs them?

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