Least Cost Method - operation research
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The document discusses the Least Cost Method used in operations research to find an initial feasible solution for transportation problems by allocating resources starting with the lowest cost cells. It outlines the steps involved, provides live applications, and enumerates advantages such as accuracy and simplicity, alongside disadvantages such as a lack of systematic rules for optimal solutions. The method is particularly relevant for logistics involving factories and warehouses.
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Least Cost Method - operation research
- 1. OPERATION RESEARCH (2161901) By :- Sajan Gohel (160123119010) Branch: - Mechanical Batch: - 7D1 Guided by: prof. Jatin Patel Gandhinagar Institute of Technology Topic: - LEAST COST METHOD
- 2. Topics • Definition • Live Application • Steps • Example • Advantages & Disadvantages
- 3. Definition • The Least Coast Method is another method used to obtain initial feasible solution for the transportation problem. • Here, The allocation begins with the cell Which has the minimum cost. The lower cost cells are chosen over the cost cell which the objective to have the least cost of transportation.
- 4. Live Examples • Factories • Warehouses • Stakeholders • For achieve unique mission and goals • of agencies
- 5. Steps 1. Identify the cell with the lowest cost 2. Allocate as many units as possible to that cell without exceeding supply or demand; then cross out the row or column (or both) that is exhausted by this assignment 3. Find the cell with the lowest cost from the remaining 4. Repeat steps 2 and 3 until all units have been allocated
- 7. Advantages • This method provides accurate solution as transportation cost is consider while making allocation. • It is very simple & easy to calculate optimum solution under this method.
- 8. Disadvantages • This method does not follow step by Step rule for obtaining optimal solution. • This method is based on the selection through personnel observation when three is tie in the minimum cost it does not follow any systematic rule.