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4fb9d08492 Again, the demand of D is completed. Therefore, 20 units shall be assigned to the cell CD. .. Similarly, in case the demand is more than supply, then dummy destination or origin is added to the table with the supply equal to the difference in quantity demanded and supplied and the cost being zero. Generally, the cost where maximum quantity can be assigned should be chosen to obtain the better initial solution. The minimum transportation cost can be obtained by following the steps given below: The minimum cost in the matrix is Rs 3, but there is a tie in the cell BF, and CD, now the question arises in which cell we shall allocate. Contact Us color1 color2 color3 color4 . Business JargonsBusinessLeast Cost Method Least Cost Method Definition: The Least Cost Method is another method used to obtain the initial feasible solution for the transportation problem. The next minimum cost is Rs 9; we shall assign 40 units to the cell CE.
Again the minimum cost in the matrix is Rs 3. Therefore, Total Cost = 50*8 + 5*6 + 35*3 +20*3 +40*9 = Rs 955. Lets understand the concept of Least Cost method through a problem given below: In the given matrix, the supply of each source A, B, C is given Viz. Related terms: North-West Corner Rule Vogels Approximation Method Stepping Stone Method Transportation Method of Linear programming Modified Distribution Method Leave a Reply Cancel reply Your email address will not be published. Only 40 units are left with the source C. The supply of source A gets saturated. 403 Forbidden.. With this, the demand of retailer D gets fulfilled. 50units, 40 units, and 60 units respectively.