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ON
LEAST COST METHOD
AND
NORTH WEST CORNER METHOD
Presented by:
Nuwash Kerketta
BCA 6th semester
Roll No. 03
Sub- Operation Research
LEAST COST METHOD
Definition:
The Least Cost 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
with the objective to have the least cost of
transportation.
The Least Cost Method is considered to produce more
optimal results than the North-west Corner because it
considers the shipping cost while making the allocation,
whereas the North-West corner method only considers
the availability and supply requirement and allocation
begin with the extreme left corner, irrespective of the
shipping cost.
Steps
S1 S2 S3 S4 Supply
F1
6 4 1 5 14
F2
8 9 2 7 16
F3
4 3 6 2 5
Demand
6 10 15 4 35
S1 S2 S3 S4 Supply
F1
6 4 1 5 14
F2
8 9 2 7 16
F3
4 3 6 2 5
Demand
6 10 15 4 35
S1 S2 S3 S4 Supply
F1
6 4 1 5 14
F2
8 9 2 7 16
F3
4 3 6 2 5
Demand
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3
4 3 6 2 5
Demand 1
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3
4 3 6 2 5
Demand 1
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3
4 3 6 2 5
Demand 1
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3
4 3 6 2 5
Demand 1
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3
4 3 6 2 5
Demand 1
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3
4 3 6 2 5
Demand 1
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3 4 1
4 3 6 2 5
Demand 1 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3 4 1
4 3 6 2 5
Demand 1 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3 4 1
4 3 6 2 5
Demand 1 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2
8 9 2 7 16
F3 4 1
4 3 6 2 5
Demand 1 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2 1 15
8 9 2 7 16
F3 4 1
4 3 6 2 5
Demand 1 0 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2 1 15
8 9 2 7 16
F3 4 1
4 3 6 2 5
Demand 1 0 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2 1 15
8 9 2 7 16
F3 4 1
4 3 6 2 5
Demand 1 0 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2 1 15
8 9 2 7 16
F3 11 4 1 00
4 3 6 2 5
Demand 99 110 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2 1 15
8 9 2 7 16
F3 11 4 1 00
4 3 6 2 5
Demand 99 110 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2 1 15
8 9 2 7 16
F3 11 4 1 00
4 3 6 2 5
Demand 99 110 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2 6 1 15 9
8 9 2 7 16
F3 11 4 1 00
4 3 6 2 5
Demand 0 99 110 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2 6 9 1 15 9 0
8 9 2 7 16
F3 11 4 1 00
4 3 6 2 5
Demand 0 9 90 110 0
6 10 15 4 35
S1 S2 S3 S4 Supply
F1 14 0
6 4 1 5 14
F2 6 9 1 15 9 0
8 9 2 7 16
F3 11 4 1 00
4 3 6 2 5
Demand 0 9 90 110 0
Total cost:
6 10 15 4 35
= 141 68 99 12 13 42
= 156
North West Corner
Method
North-West Corner Method
S1 S2 S3 S4 Supply
F1 14
6 4 1 5
F2 16
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 10 15 4
S1 S2 S3 S4 Supply
F1 14
6 4 1 5
F2 16
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 10 15 4
S1 S2 S3 S4 Supply
F1 6 14 8
6 4 1 5
F2 16
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 15 4
S1 S2 S3 S4 Supply
F1 6 14 8
6 4 1 5
F2 16
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 15 4
S1 S2 S3 S4 Supply
F1 6 14 8
6 4 1 5
F2 16
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 15 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 16
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 2 15 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 16
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 2 15 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 2 16 14
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 2 0 15 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 2 16 14
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 2 0 15 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 2 16 14
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 2 0 15 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 2 14 16 14 0
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 2 0 15 1 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 2 14 16 14 0
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 2 0 15 1 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 2 14 16 14 0
8 9 2 7
F3 5
4 3 6 2
Demand 35
6 0 10 2 0 15 1 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 2 14 16 14 0
8 9 2 7
F3 1 5 4
4 3 6 2
Demand 35
6 0 10 2 0 15 1 0 4
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 2 14 16 14 0
8 9 2 7
F3 1 4 5 4 0
4 3 6 2
Demand 35
6 0 10 2 0 15 1 0 4 0
S1 S2 S3 S4 Supply
F1 6 8 14 8 0
6 4 1 5
F2 2 14 16 14 0
8 9 2 7
F3 1 4 5 4 0
4 3 6 2
Demand 35
6 0 10 2 0 15 1 0 4 0
Total cost = 6684291421642
= 128
References:
https://businessjargons.com/least-cost-meth
od.html
https://businessjargons.com/north-west-corne
r-rule.html