The least cost method is used to obtain an initial feasible solution for the transportation problem. It works by allocating units to the cell with the lowest cost first without exceeding supply or demand, then crosses out the exhausted row or column. This process repeats until all units are allocated. The method provides an accurate solution while considering transportation costs, but it does not guarantee finding the true optimal solution and may not be systematic in cases of tied costs.

1. Least Cost Method
Rahul Chauhan(116381)

2. Topics
 Definition
 Live Application
 Steps
 Example
 Advantages & Disadvantages

3. Definition
The Least Coast Method is another method
used to obtain the 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 higher cost
cell which the objective to have the least
cost of transportation.

4. Live Examples
 Factories
 Warehouses
 Stakeholders
 For achieve unique mission and goals
of agencies

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 cells
4. Repeat steps 2 and 3 until all units
have been allocated

6. Example
Destination
Source
D1 D2 D3 D4
Supply
S1 6 4 1 5 14
S2 8 9 2 7 16
S3 4 3 6 2 5
Demand 6 10 15 4 35

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.