Testing the optimality, Operation Management

Step 1 : It is observed that cost of transportation is to Rs. 144.

Step 2: Testing the Optimality : After obtaining the initial basic feasible solution the next step is to test whether it is optimal or not. There are two methods of testing the optimality of basic test is a applied by calculating the opportunity cost of each empty cell. The second methods employed for testing optimality is called the modified distribution methods( MODI). This 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.

Posted Date: 4/5/2013 2:03:20 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
Write about your understanding of the assumptions of new science and their implications for leaders in the 21st Century. 1. How are they supported by The Thinking Habits of Mind

Super TV Channel 6 operates in a major Midwestern city and is on the air 24 hours a day. Labour-management relations there have been relatively good over the years. There are three

1) Describe the five major principles that support communication-style theory. 2) What two dimensions of human behavior are used to identify communication style? 3) What are

Consider mean arrival rate is 1 customer every 4 mins and mean service time is 5/2 mins. If waiting cost is $5 per unit per min and cost of serviceing one unit is $4. Find minimum

What is ABC analysis in inventory control? Discuss its advantages/disadvantages

Why do firms engage in FDI when alternatives such as exporting and licensing are available? How do location-specific advantages influence organisational decisions on FDI?

A call center employs 1,000 agents. Every month 50 employees leave the company and 50 new employees are hired. How long does the average agent work for this call center?

1) What makes a constraint critical or active? Explain. 2) Jim has used the theory of constraints to maximize the production of his active constraints and match the production r

define the term "operation management" and expailn the importants of operation management theories in both manufacturing and services

Should Marrone use her Internet financing source exclusively, or should she maintain a relationship with her local bank commercial loan officer? Why or why not?