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This method is more systematic and orderly than least cost method. Here penalties for each column and row of the transportation table are determined, and the row or column with largest penalty is chosen for allocation. Then the cell with lowest cost form the selected row column is allocated the maximum possible.
After this the row or column whose supply or demand is exhausted is exhausted is deleted and the penalties are again calculated for the shrunken table. The procedure continue still full demand supply is exhausted. Here penalty of each row column = ( second lowest - lowest costs of that row / column.
Operation reac Involves the use of mathematical models, equations and similar other mathematical expressions. Assumptions are always incorporated in the derivation of an equa
types of OR ,technique and mathematical system and linear programming system in operation research
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how does it work
MEAN DEVIATION Mean deviation of a series is the arithmetic average of the deviations of various items from the median or mean of that series. Median is preferred
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