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A method which is used to obtain the initial reasonable solution for the transportation problem is known as Least Cost Method. Least Cost Method includes more than one demand centers and supply centers and they are targeted to achieve the least cost of transportation which is explained in Least Cost Method Assignment Help. As the name suggests, the cell having the minimum cost is allocated first. In order to have the least cost of transportation, the lower cost cells are given more preference as compared to the higher cost cells. The Least Cost Method is considered to be producing more accurate and optimum results as compared to the north – west corner. This is because, the north – west corner method gives importance only to the availability and supply requirement with the extreme left corner as the beginning allocation, whereas, the Least Count Method includes the shipping costs while making the allocations. While constructing the table for the Least Cost Method, the supply and demand should be equal. Suppose, the supply is greater than the demand, the dummy source is added to the table and the demand is equal to the value obtained by subtracting the demand from the supply. In this case the cost remains zero. Now suppose, the rate of demand increases the rate of supply, then the dummy origin is added to the table where the supply is equal to the difference between the demand and supply, cost being zero. Students looking for least cost method shall refer to Least Cost Method Assignment Help.
Advantages and Disadvantages of Least Cost Method
The various advantages of Least Cost Method are given in details in Least Cost Method Assignment Help
• Unlike north west corner method, Least Cost Method gives us the accurate results because; it includes the transportation cost while making the allocation.
• Least Cost Method is a method which is very simple to use.
• Least Cost Method is very easy to understand.
• Under the method of Least Count, it is very easy to easy and simple to calculate the optimum solution.
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There are various disadvantages of Least Cost Method which are highlighted by Least Cost Method Assignment Help
• In order to obtain the optimum solution certain rules should be followed. But Least Cost Method does not follow those step by step rules to find out the optimum solution.
• Least Cost Method does not follow any systematic rule when there is a tie in the minimum cost.
• Least Cost Method allows selection through personnel observation which might create misunderstanding in obtaining the optimum solution.
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