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
- 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.
- 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.