Least cost methods, Operation Management

Assignment Help:

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


Related Discussions:- Least cost methods

Explain collective bargaining, Explain collective bargaining Collectiv...

Explain collective bargaining Collective Bargaining : Collective Bargaining constitutes the negotiations among the management and the union with the final objective of agreein

Identify the most vital factors in each perspective, Summarize the classica...

Summarize the classical, behavioural and quantitative perspectives on management Identify the most important factors in each perspective

Explain incurring liability under the equal pay act, Jill and Seth, recent ...

Jill and Seth, recent graduates, were hired as computer analysts for HRJ Enterprises. In a conversation over lunch, Jill discovered that Seth's salary was 15% higher than hers. Ass

Explain how will you account for any wastage, You are the branch operations...

You are the branch operations manager for a leading manufacturing company. The following are the bill of materials (BOM), Master Production Schedule, and Inventory Record Sheet for

Explain strategies in the business buying decision process, Describe the ei...

Describe the eight general strategies in the business buying decision process.

Define role social forces play in the theory of management, What role do so...

What role do social forces play in the theory of management? Explain

Explain detrimental to effective group functioning, What is groupthink? Why...

What is groupthink? Why can groupthink be detrimental to effective group functioning?

Explain vent-promotion bauiness, Hirizontal intergration has benefits to th...

Hirizontal intergration has benefits to the firms involved. Consider the consolidation in the vent-promotion bauiness when Live Nation bought Ticketmaster in 2010. List some specif

Explain expression for total revenue, There is a fixed cost of$50,000 to st...

There is a fixed cost of$50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. Expressio

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