Testing the optimality, Operation Management

Testing the Optimality: After obtaining the initial basic feasible solution the next step is test whether it optimal or not. There are two methods of testing the optimality of a basic feasible solution.

The first of these is called the stepping stone method in which the optimality test is applied by calculating the opportunity cost of each empty cell.

The second method employed for testing optimality is called the modified distribution method ( MODI). The method is easier and more efficient than the stepping stone method. It is based on the concept of the dual variables that are used to evaluate the empty cells. Using these dual variable the opportunity cost of each of the empty cells is determined. The opportunity cost values in both the methods indicate the optimality or otherwise of a given solution.

Improving the Solution: By applying either of these methods if the solution is found to be optimal then the problem is solved. If the solution is not optimal then a new and better basic feasible solution is obtained.. it is done by exchanging a non basic variable for one basic variable. In simple terms rearrangement is made by transferring units from an occupied cell to an empty cell that has the largest opportunity cost and then shifting the units from other related cells so that all the rim requirements are satisfied. This is achieved by first tracing a closed loop.

Posted Date: 4/5/2013 1:11:45 AM | Location : United States







Related Discussions:- Testing the optimality, Assignment Help, Ask Question on Testing the optimality, Get Answer, Expert's Help, Testing the optimality Discussions

Write discussion on Testing the optimality
Your posts are moderated
Related Questions
An urn contains nine white balls and 11 black balls. A ball is drawn and replaced. If the ball is white your opponent pays you 25 cents. If it is black you pay him 25 cents. You ha

Susan Gilbert, a purchasing agent for Wisconsin Plastic Inc (WSI) is reviewing quotations from suppliers for a new plastic gear. Susan plans to either place an order for 12000 year

The weekly output of a fabrication process is shown below together with data for labor and material inputs. Standard selling price is $100 per unit. Overhead is charged weekly at t

In December, general motors produced 7,200 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor hour during that

Why can't I read my textbook? Every time I click the link "Read Now" a box pops up telling me the Privacy Policy. I have no way of agreeing to the policy, it just states all the ru

Compare and contrast the benefits of using qualitative and quantitative data collection methods as they apply to organizational development (OD).

1. What is the role of a CIO in today's global business environment? 2. Dr. Carr presents a good argument in the "IT doesn't matter" reading. Present your view of Carr's central

Which of the following documents serves as an informal contract between the project team and the project sponsor? A. The team members employment contracts B. The project char

A state department of tourism and recreation collects data on the number of cars with out-of-state license plates in a state park. (The group's position is that more out-of-state p

State the Perpetual inventory control systems Continuous (Perpetual) Inventory Control Systems: Stock levels are continually monitored and reviewed within ‘real-time’ and