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

Characteristics of continuous or flow production, Characteristics of Contin...

Characteristics of Continuous or Flow Production Flow of Material: The flow of materials is continuous and there is little or no queuing at any stage of processing. Mac

Explain the potential for a new shampoo package, Which type of research des...

Which type of research design - exploratory, descriptive, or casual - is appropriate for the following examples? Explain why? A hair-care manufacturer interviews wholesalers, retai

Describe dss category-type according to the ais taxonomy, Your proposal wil...

Your proposal will have the following elements: (a) State your targeted problem/decision process Examples are: - Hotel Reservation Recommender System - Course Selection

Explain what are the minimum and maximum cycle times, An assembly line with...

An assembly line with 17 tasks is to be balanced. The longest task is 2.1 minutes, and the total time for all tasks is 23 minutes. The line will operate for 480 minutes per day. a.

Compute the npv, Expando, Inc., is considering the possibility of building ...

Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering two op

Explain hired assuming a 80 percent target utilization rate, The process fo...

The process for renewing a driver's license at the Archer County Courthouse is as follows. First, the clerk fills out the application; then the clerk takes the driver's picture, an

Explain coupon rate with semi-annual coupon payments, Genny, Inc. bonds hav...

Genny, Inc. bonds have a 9% coupon rate with semi-annual coupon payments. They have 9 1/2 years to maturity and a par value of $1,000. Compute the value of Genny's bonds if investo

Explain risk assessment methodologies, Discussion 1- Thinking about any act...

Discussion 1- Thinking about any activity that you engage in that involves risk, developed a risk management plan for that activity. Discussion 2- Compare and contrast the follo

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