Testing the optimality, Operation Management

Assignment Help:

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.


Related Discussions:- Testing the optimality

The study of global business is relevant to work company, Discuss the follo...

Discuss the following theory: The study of global business is relevant if you work or plan to work in a large multinational company, but it has little or no significance for indivi

Explain operating a business in an ethical manner, Operating a business in ...

Operating a business in an ethical manner takes time, effort and commitment. What are the key elements to a company having successful organizational ethics? What can we do as manag

Describe the difference among rationalist and incrementalist, Explain the d...

Explain the difference between rationalist and incrementalist strategy. Who are the main protagonists of the theories? How have the debates regarding these theories had implication

Explain distinction between feasibility and acceptability, Remind yourself ...

Remind yourself of the distinction between feasibility, acceptability and vulnerability discussed. Evaluate both technologies using these criteria.

Explain appropriate taguchi loss function, A quality characteristic has a d...

A quality characteristic has a design specification (in inches) of 0.200 +/- 0.020. If the actual process value of the quality characteristic exceeds 0.200 by the tolerance of 0.02

Travael chart, I want some project about travel chart.

I want some project about travel chart.

Explain dependability the consumer price index, What are some characteristi...

What are some characteristics and provisions of the cost of living escalator clauses and wage reopener arrangements that are part of the unions' efforts to adjust to the lack of de

Advantage of least cost method, Advantage of Least Cost Method a.      ...

Advantage of Least Cost Method a.       This method   provides accurate solution as transportation cost is consider while making  allocation. b.      It is very simple  and

Which is a group of products that are closely related, A _____ is a group o...

A _____ is a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the s

Explain decentralization occurs as an organization grows, According to a re...

According to a review of major U.S. companies, four stages of structural development are consistently present. At which stage does product demand become so high that a crisis devel

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd