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

Linear programming, classification of linear programming on the basis of st...

classification of linear programming on the basis of structure

Depict a decision tree for problem, A manager is trying to decide whether t...

A manager is trying to decide whether to build a small medium, or large facility. Demand can be low, average, or high, with the estimated probabilities being 0.25, 0.40, and 0.35,

Explain survival of the military health system, Discuss strengths and threa...

Discuss strengths and threats to the survival of the military health system. Summarize the Tricare program and detail its options for enrolees. What is Tricare's greatest threat an

Group layout, Can I know what is group layout

Can I know what is group layout

Explain probabilites for grades in management science, The following probab...

The following probabilites for grades in management science have been determined based on the past records: Grade Probability A .10

Explain why is mis one of the most important courses, Why is MIS one of the...

Why is MIS one of the most important courses for a business student?

Explain what are competencies, What are "competencies?" Explain, and provid...

What are "competencies?" Explain, and provide two or three examples.

Explain before formalizing the foreign relationships, Many entrepreneurial ...

Many entrepreneurial organizations have established partnerships in other countries (i.e., Toyota in the United States, Nike in Thailand, etc.). What do entrepreneurial organizatio

Determine factors creating competitive strategy of business, Determine the ...

Determine the factors that should be evaluated when creating competitive strategy of a business. For each factor, indicate its significance. Provide support for your answer. Evalua

Characteristics of continuous or flow production, Characteristics of Contin...

Characteristics of Continuous or Flow Production Flow of Material: The flow of materials is continuous and there is little or no queuing at any stage of processing. Mac

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