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
Agents and employees of Apples Corporation and Oranges Corporation are convicted of conspiring to violate a federal law that is punishable by a term of imprisonment and a fine. Can

From the case study, determine what ideals, obligations, and effects must be considered in using psychological tests as pre-employment screens. Decide which the most important cons

What are three cost-containment measures that were implemented through the collective bargaining process in 1985? Why were these considered milestones in curtailing health benefit

The United States Constitution: Answer is the oldest written constitution in force in a major nation created the four branches of government established the common law created the

Discuss the concept of a career. What are the Four Career Stages- List each one with its specific characteristics

Think back to a time when you wondered about a practice or structure within an organization. If you cannot remember such a situation from your own work history, you may write about

Johnson Plastics makes and sells, among many other things, specialty plastic display cases for retail stores. Johnson's expected demand for the display cases is 1,000 units, and av

Using Pareto analysis, categorize the products into Classes A, B, C, based on usage value. Would this approach be useful for categorizing and controlling stock levels of all the pr

Define the product you will be offering at College Pretzel Company (CPC) in detail. Create any necessary documentation such as an engineering drawing or a bill of material for the

E - Business or E-Commerce E-commerce (usually referred to by the more encompassing term 'e-business') is few suppliers? defined by IBM's Lou Gestner as being about: Verticall