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
Selecting the right projects Selecting the right parteners Providing an effective leadership Discuss why these factors are vital for the success of international construct

As OB practitioners we know that emotions form preferences before we consciously evaluate those choices and this impacts the quality of the decisions made at the company. The presi

As an entrepreneur, how would you go about doing a job analysis for the first employee you are going to hire in your new business? What are the three steps in completing a job anal

(CPG Bagels) CPG Bagels starts the day with a large production run of bagels. Throughout the morning, additional bagels are produced as needed. The last bake is completed at 3 p

Messages are transmitted from low speed terminals and arrive at a message concentrator at a Poisson rate of 600/hr. They are held in a buffer until a hi-speed trunk line is free to

1. Construct and inerpret a control chart for the packing slip data. 2. Construct a Pareto analysis of the errors. 3. What information might a separate char

1) Bill of material errors can cause serious problems for MRP system calculations of dependant demands 2) No matter what forecasting technique is used, the probability of a prod

Explain why the creation and maintenance of an ethical workplace is a challenge for business and HR specifically? CITED/REFERENCE IF ANY.

Need to describe in-depth the contrast and comparison of instrumental versus intrinsic within the business ethics development.