Least Cost Cell First Method - Definition & Meaning
What is 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 |
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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