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VAM is an improved version of the least-cost method that generally, but not always, produces better starting solutions. VAM is based upon the concept of minimizing opportunity (or penalty) costs. The opportunity cost for a given supply row or demand column is defined as the difference between the lowest cost and the next lowest cost alternative. This method is preferred over the methods discussed above because it generally yields, an optimum, or close to optimum, starting solutions. Consequently, if we use the initial solution obtained by VAM and proceed to solve for the optimum solution, the amount of time required to arrive at the optimum solution is greatly reduced.
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What do you call a method of estimating or thing that shares the same qualities in math?
In mathematics, a method of estimating is often referred to as an "approximation." An approximation shares qualities such as being close to the actual value while being simpler or easier to compute. Techniques like rounding, linearization, or using significant figures can all be considered forms of approximation in mathematical contexts.
Advantage and disadvantage of NPV what is the advantage and disadvantage of Net Present Value Method?
Advantages: a. It will give the correct decision advice assuming a perfect capital market. It will also give correct ranking for mutually exclusive projects. b. NPV gives an absolute value. c. NPV allows for the time value fo the cash flows. Disadvantages: a. It is very difficult to identify the correct discount rate. b. NPV as method of investment appraisal requires the decision criteria to be specified before the appraisal can be undertaken.
What are the disadvantages of whole part whole method?
There is no disadvantage A disadvantage is that it takes longer to learn a skill as you have to break it down and learn it bit by bit.
What advantage and disadvantage grid sampling method?
Grid sampling is advantageous because it provides a systematic approach to data collection, ensuring uniform coverage of an area and reducing bias in sample selection. However, its disadvantage lies in the potential for overlooking localized variations or unique features within the grid, which can lead to a lack of detailed insights in heterogeneous environments. This method may also require more resources and time compared to more targeted sampling techniques.
What is the problem rectangle method?
One problem with using rectangles to approximate an area under a curve is it will overestimate or underestimate the area, depending on which endpoint is used. The trapezoidal method gives a closer approximation.
Advantages and disadvantage of project method?
Advantage and disadvantage of project method
What is the advantage and dis advantage of mid-point method?
The advantage of the mid-point method in mathematics is that it provides a more accurate approximation of the area under a curve compared to the trapezoidal rule, especially when the function has rapid changes. The disadvantage is that it can be more computationally intensive since it requires evaluating the function at more points.
Advantage and disadvantage of collective opinion method?
The method is simple and easy to be use
What is the advantage and disadvantage oven drying method?
The advantage of oven drying method is that all the trays get equal heat and therefore the drying is uniform. The disadvantage is that the dehydrator has limited capacity.
What are advantage and disadvantage of shaduf system?
DISADVANTAGE : 1)- Irrigates less area . ADVANTAGE : 1)- Not much expensive to use this method .
What is the advantage and disadvantage of error detection method in data communication?
what are the merits and demerits of data communication
Advantage disadvantage of questioning and answering method?
Type your answer here... advantages of questioning a user about diagnostic procedures
Who developed Vogel's approximation method?
Vogel's approximation method was developed by William R. Vogel.
What are the advantages and disadvantages of the inductive method?
An advantage of the inductive method is that it looks at nature to provide information. A disadvantage is that is sometimes goes against human logic.
Merits and demerits of net present value?
Advantages:With the NPV method, the advantage is that it is a direct measure of the dollar contribution to the stockholders.With the IRR method, the advantage is that it shows the return on the original money invested.Disadvantages:With the NPV method, the disadvantage is that the project size is not measured.With the IRR method, the disadvantage is that, at times, it can give you conflicting answers when compared to NPV for mutually exclusive project.BY SHARANYA NV
What is the advantage and disadvantage of discounted payback method?
we only know the disadvantages: The cash flows beyond the payback period are ignored..
What is ment by MODI method?
Vogel's Approximation method(verification
