Lowest cost entry method, Operation Management

Lowest Cost Entry method s( LCEM) or Matrix Minima Method:

Step1: Determine  the smallest  cost in  the cost matrix of the transportation table. Let it be ( Cij). Allocate Sij = min (a i , b j) in the cell( i, j).

Step 2:

a. If Xij = ai cross  out the  i row of the  transportation  table  and decrease b by aj. Go to steps3.

b. If Xij = b cross out the  j column of the transportation  table and decrease ai by bj go to step 3.

c.  If Xij = ai = bj cross out  either the  row or j column but not both .

Step 3: Te peat steps  1 and 2  for the resulting reduced transportation  table until  all the  requirements  are satisfied. Whenever the minimum   cost is  not unique make an  arbitrary choice among  the minims.

Posted Date: 2/15/2013 3:04:37 AM | Location : United States







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