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

How developing a strategic plan for a company, Analyze the steps involved i...

Analyze the steps involved in developing a strategic plan for a company and determine which step is the most difficult to get right. Explain your rationale

What is meant by perpetual inventory system?, Ask question #What is meant b...

Ask question #What is meant by perpetual inventory system?Minimum 100 words accepted#

Explain family medical leave act, Bella, a single mother, worked for one of...

Bella, a single mother, worked for one of Casper's Burger King Restaurants, where she had a record of perfect attendance. One Saturday, her three-year old son awoke with a high fev

Information required for process planning, Information required for Process...

Information required for Process Planning Quantity of work to be along with product specifications. Availability of equipment tools and personnel (giving dates e

I want examples of some of these that are associated stories, I need exampl...

I need examples of some of these that are associated with the university. Liberty University. I know what they are i just need help with stories or exaples of these things that are

What is matrix organisation, What is Matrix organisation? Ans: A Mat...

What is Matrix organisation? Ans: A Matrix organisation is a combination of Project and functional organisation.

Explain identify an ethical framework that applies, Discuss the legal and e...

Discuss the legal and ethical issues surrounding Solyndra, the California based solar panel manufacturer. Incorporate two to three specific laws or ethical codes that apply to the

What benefit would utilize the optimal order quantity yield, Garden Variety...

Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying cost per pot are estimated to be 30 percent of the cost and ordering costs

Describe what is meant by a franchise, Question: a) What is a strategy...

Question: a) What is a strategy? b) Describe what is meant by a franchise. c) Henry Fayol put forward 6 primary functions of management. State the 6 functions and brief

Describe transfer of training, Explain "transfer of training" Share your ex...

Explain "transfer of training" Share your examples of how/when this has happened? Question: suggest a name for online groccery store which has online delivery in 30mins?

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