LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Q.9 (iii) of transportation or. practice manual (2014)

Maithili (1) (476 Points)

24 September 2014

Hi friends,

I hav Doubt w.r.t Q.9, part (iii) given on Pg.11.36 of O.R. Practice Manual (2014 edition)

Plz tell me

1) Is the Ans. & Explanation given in O.R. Practice Manual Pg 11.39 for part Q.9 (iii) correct ?

A) Yes

or B) No

2) Also , if possible (if u find time) , kindly let me know as to how the ans. was derived ?

i mean , was the Answer (i.e. Allocation) derived by

A) Re-doing the Entire VAM Operations again by taking p.u.Cost from Riute'C' to Market 'II' as Rs.3 p.u.

and then making allocations

or B) Any other short-cut method

Kindly Reply

Reply
Follow
Share

16 Replies

Maithili (1) (476 Points)
Replied 24 September 2014

Also , kindly note that a different Answer & Explanation has been given for the SAME SUM under Q.4 of Padhuka Text Book

So there is a Confusion as to which one is correct?

Plz reply urgently

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 24 September 2014

Hi.. I got up prob in pm..wait i explain. Reworking of vam nt required. And am also referring padhuka..may i knw wch year edition u have?

1 Like

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 24 September 2014

First of all allocation of units is nt given properly in the optimal solution i.e C to iii, nt C to iv. Hope u saw dis. And for ur que numb (iii)..u have to work out by giving cost rs 3 in C to ii. Hope u got it y it is 3 units. I have re-worked VAM..answer given is correct as given in sub question 3. Allot the next least cost i.e 3(as compared wid 4 and 5) in C to ii and rework vam table.

1 Like

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 24 September 2014

And regarding padhuka book, i have jan 2013 edition. I dont have that problem to see why the answer differs. If possible click that from padhuka and send me at kishor.gbhatt @ gmail.com. Let me see.

1 Like

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 24 September 2014

But i can say solution given in pm is write regarding (iii). U only rework it, u wl come to knw. And may be in padhuka followed some othr short cut instead of reworking VAM again. However, let me knw hw it is given in padhuka.

Maithili (1) (476 Points)
Replied 26 September 2014

Dear Kishor, thanks for taking efforts to solve the sum & reply

Part (ii) of Q.9

In my opinion the allocation made in part (ii) is correct

Bcoz , if u see there was a Negative ^ij value , i.e. (-1) in the cell R3C4 S

So, when the Re-allocation was made , 1 unit was transferred from R3C3 to R3C4

So , the final Ans. , i.e. allocation of 1 unit from Warehouse C to Market IV is correct

Maithili (1) (476 Points)
Replied 26 September 2014

Dear Kishor,

Regarding Part (iii) of Q.9 when i solved the sum by substituting the Cost of

Warehouse 'C' to Market 'II' as Rs. 3 p.u.

and thereafter performing VAM Operation from the begining , i got a different answer from that given in the Practice manual.

i.e. if we perform VAM Operation from the begining by taking p.u. cost as Rs.3

then No allocation is made for >> 'C' to 'II' bcoz the cost p.u. of 'A' to 'II' is Rs.2 (which is Lesser than Cost of Rs.3)

So entire allocation will be made to 'A' only again

So , i feel the Answer should have been that 'C' must reduce its cost p.u. to Rs.2 for Market 'II' so that it will get Allocation

(This is what is given in PadhukaTextBook (Q.4 Pg.17.9 of Nov,12 Edition - which i feel will also be the same in 2013 edition of the book )