GANDHINAGAR INSTITUTE OF
TECHONOLOGY(012)
SUBJECT : Operation Research
(2171901)
Active Learning Assignment on the topic of
“Least Cost Method”
BE Mechanical Sem:7 A3
Prepared By: Yash
Topics
 Definition
 Live Application
 Steps
 Example
 Advantages & Disadvantages
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.
Uses At
 Factories
 Warehouses
 Stakeholders
 For achieve unique mission and goals
of agencies
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
Example
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.
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.
Thank You

Least Cost Method ( Operation Research )

  • 1.
    GANDHINAGAR INSTITUTE OF TECHONOLOGY(012) SUBJECT: Operation Research (2171901) Active Learning Assignment on the topic of “Least Cost Method” BE Mechanical Sem:7 A3 Prepared By: Yash
  • 2.
    Topics  Definition  LiveApplication  Steps  Example  Advantages & Disadvantages
  • 3.
    Definition  The LeastCoast 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.
    Uses At  Factories Warehouses  Stakeholders  For achieve unique mission and goals of agencies
  • 5.
    Steps 1.Identify the cellwith 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
  • 6.
  • 7.
    Advantages  This methodprovides 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 methoddoes 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.
  • 9.