Answers:
This is one of
the most efficient methods as it determines the optimal solution quickly and
requires less calculation. This is used to calculate the basic feasible
solution of a transportation problem by considering the lowest cost in the
matrix. The Steps of LCM are as follows:
1. Identify the lowest cost cell in
the entire transportation matrix and allocate units as much as possible to this
cell.
2. Eliminate the row or column in
which either supply or demand is exhausted. In case the lowest cost cell is not
unique, select the cell where maximum allocation can be made.
3. After adjusting the supply and
demand for all uncrossed rows and columns, repeat the procedure with the next
lowest unit cost among the remaining rows and columns of the transportation
matrix.
4. Repeat the procedure until the
entire supply at different sources is exhausted to satisfy the demand at
different warehouses.