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Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2014 Questions asked in june 2014 costing
CA Final paper
Please Answers the following questions:-

Question : Will the solution for a minimization problem obtained by Vogel's Approximation Method and Least Cost Method be the same? Why ?

Question : In a 3x4 transportation problem for minimizing costs, will the R2c1 cell (at the intersection of the 2nd row and 1st column) always figure in the initial solution by the North West Rule ? Why ?

CA. Ravi Shanker

CA. Ravi Shanker (Expert)
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04 June 2014 Ques 1:
Ans: Not be same. Reasons:
1. Concept of penalty is not determined under least cost method.
2. Under least cost method allocation is made first to cell which has least cost of transportation but in case of VAG allocation is made to lowest cost cell of highest cost difference/ penalty row or column.

Ques-2:
If Column requirement fulfilled in the first allocation (i.e. first row and first column) then it is not essential allocation in 2nd row and 1st column under NWC Rule..

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