Least cost methods, Operation Management

Least Cost Methods ( LCM): The NW corner rule describe earlier consider only the availability and supply requirements in making assignments'. It take no according of the shipping costs given in the tableau. It is therefore not a sound method as it ignores the very factor ( cost) which is sought to be minimized. The least cost method and the Vogel Approximation methods consider the shipping costs while making allocations.

2056_Least Cost Methods.png

The transportation schedule obtained is reproduced in table below. It involves a total cost of Rs. 555.

 Total Cost 4x15+1x35+3x20+8x20+4x60x= Rs. 555

Posted Date: 4/5/2013 1:14:59 AM | Location : United States







Related Discussions:- Least cost methods, Assignment Help, Ask Question on Least cost methods, Get Answer, Expert's Help, Least cost methods Discussions

Write discussion on Least cost methods
Your posts are moderated
Related Questions
What is the difference between using an exact optimization technique and a heuristic to solve a problem?

Explain how a company might benefit from the Contract Management Maturity Model. Can you suggest any viable reasons for a company's choosing not to conduct this assessment? If so,

A bottling facility with an effective capacity of 40,000 crates per day operates with an efficiency of 85%. How many crates will it need to plan for bottling on a day that requires

Question: CASE STUDY You have been newly appointed as team leader of a Management department consisting of 5 team members. The team has not been performing well in the pa

Identify and discuss applicable federal regulations relating to kickbacks

what is significance of loading?

Please answer both questions fully to have points awarded, Thanks! Decreasing the Incidence of CVD" Please respond to the following: 1. Propose the steps that might be taken

You have just been hired as a brand manager of toothpaste for a large consumer products company. Your job mainly involves encouraging the advertising and production groups to promo

Which behaviours, thinking approaches, emotional stances, decisions, and business management actions can be found in the two readings that pertain to adaptability, resilience, and/

Data collected on the monthly demand for lawn mower at Azaka Gaarden Supply are shown in the following table Period Demand for lawn mower January 10 February 12 March 18 April 16 M