# Least Cost Cell First Method

Posted in Operations and Supply Chain Terms, Total Reads: 6717

## Definition: Least Cost Cell First Method

This is one of the five methods for obtaining initial basic feasible solution for transportation problems in operations, where more than one supply centers and demand centers are there and the aim is to achieve least cost of transportation.

Example: Let there are three supply points (S1, S2, and S3) and three demand points (D1, D2, D3) with their supply and demand units given. Each cell has mentioned in it the cost involved in transporting goods from supply to demand point.

 D1= 1300 units D2 = 1900 D3=  900 S1 = 1000 units Rs 800 Rs1200 Rs 700 S2 = 1400 units Rs 500 Rs 750 Rs 650 S3 = 1700 units Rs 1000 Rs 950 Rs 1100

Steps:

1. Identify the least cost cell, D1-S2. Allocate the maximum possible (lower of supply and demand) , i.e, 1300 units. Cross D1 column.

2. Move to the next lowest cell cell, i.e, D3-S2. Allocate maximum possible, which is 100 units.

3. Keep on repeating this until all the demand points requirements is met.

 D1= 1300 units D2 = 1900 D3=  900 S1 = 1000 units Rs 800; 0 units Rs1200; 200 units Rs 700; 800 units S2 = 1400 units Rs 500; 1300 units Rs 750; 0 units Rs 650; 100 units S3 = 1700 units Rs 1000; 0 units Rs 950; 1700 units Rs 1100; 0 units

Hence, this concludes the definition of Least Cost Cell First Method along with its overview.

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