D D D a i O ( ) / O O b j / XII Std - Business Maths & Stat EM Chapter - - Operations Research Second allocation: D D D D a i O ( ) ( ) / / O O b j / / Third Allocation: D D D D a i O ( ) ( ) / / O ( ) / O b j / / / Fourth Allocation: D D D D a i O ( ) ( ) / / O ( ) ( ) / / O b j / / / / Fifth allocation: D D D D a i O ( ) ( ) / / O ( ) ( ) / / O ( ) / b j / / / / / Final allocation: D D D D a i O ( ) ( ) / / O ( ) ( ) / / O ( ) ( ) / / b j / / / / / / Transportation schedule : O à D , O à D , O à D , O à D , O à D , O à D . = ( )+( )+( )+( )+ +( )+( ) = ` Method: Least Cost Method (LCM) The least cost method is more economical than north-west corner rule,since it starts with a lower beginning cost. Various steps involved in this method are summarized as under. Step : Find the cell with the least(minimum) cost in the transportation table.
Step : Allocate the maximum feasible quantity to this cell. Step: Eliminate the row or column where an allocation is made. XII Std - Business Maths & Stat EM Chapter - - Step: Repeat the above steps for the reduced transportation table until all the allocations are made. If the minimum cost is not unique then the choice can