Stepping Stone Methods :

This is a procedure  of determining the optimal if any for improving  each  of the non basic  variables  in terms of the objective function. To determine  this  potential each of the non basic  variables ( Empty cells ) is consider one by one. For  each  such well  we find  out as to what  effect on  the total cost  would  be if  one unit is assigned to this  cell. With  this information  then we come  to know  whether  the solution  is optimal  or not. If not we  improve  that solution. To  understand  it we  refer to the  table a side which  is a reproduction of the  table above  containing the  initial basic  solution obtained by NW corner rule.

 In the  above table there  are four empty cells  BD, CD, AF, BF,

The  rule for  testing  the optimality  is if none  of the empty  cell has a positive  opportunity  cost the solution is optimal. And if  one ( or more ) of  the empty  cell have  a positive  opportunity  cost the  solution is not  optimal  and calls for revision. We  concentrate only on the cells  that  have  positive  opportunity  cost and would  select the one with  the highest  value.

Posted Date: 4/5/2013 1:08:37 AM | Location : United States

Ask an Expert

Related Discussions:- Stepping stone methods, Assignment Help, Ask Question on Stepping stone methods, Get Answer, Expert's Help, Stepping stone methods Discussions

Write discussion on Stepping stone methods
Your posts are moderated

Write your message here..

Related Questions

Generate a system approach to performance appraisal, Develop a system appro... Develop a system approach to performance appraisal that combines a group of appraisers, various times for appraisal, and a variety of instruments. Identify when each element would

Advantages of process layout, Advantages of Process Layout Lower C... Advantages of Process Layout Lower Capital Investment : Less capital is needed for this layout because production apparatus is applied to maximum capacity with minimum dup

International, what factors have contributed to the importance of internati... what factors have contributed to the importance of international markets on operations management

Explain personal computers and airline travel, Are the following global ind... Are the following global industries or multi domestic industries: bulk chemicals, pharmaceuticals, branded food products, moviemaking, television manufacture, personal computers an

When are the holding costs raised, When are the holding costs raised? H... When are the holding costs raised? Holding cost rises while the size of order rises. It is since a higher level of average stock will be kept during the year. Thus holding cost

Explain team building and interpersonal dynamics, Discuss how the team basi... Discuss how the team basics can be applied in real situations where team thinking becomes important. Course: Team Building, Interpersonal Dynamics, and Empowerment

Formulate a problem as a linear programming problem, The Grand Valley Compa... The Grand Valley Company, run by the J. Motwani family, produces two products: bed mattresses and box springs. A prior contract requires that the firm produce at least 30 mattresse

Define how this influence of culture can effect organization, The Japanese ... The Japanese firm Matsushita has a business philosophy from the strong founder Konosuke. This business philosophy was codified as the "Seven Spiritual Values" of Matsushita that al

Compute the total annual cost, A local nursery, Greens, uses 2184 bags of p... A local nursery, Greens, uses 2184 bags of plant food annually. Greens works 52 weeks per year. It costs $8 to place an order for plant food. The annual holding cost rate is $2 per

Compute the value of cash flow based on discount rate, Calculate the presen... Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows 1. Year 1 = $100,000 2. Year 2 = $150,000 3. Year 3 = $200,0