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

Explain inventory turnover, Baker Mfg. inc. wish to compare its inventory t...

Baker Mfg. inc. wish to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory. 1. B

Compute an appropriate process capabiity ratio, The weight of nominal 1-kg ...

The weight of nominal 1-kg containers of a concentrated chemical ingrediant are shown below data. Part 0. 9475 0.9775 0.9965 1.0075 1.0180 0. 9705 0.9860 0.9975 1.0100

Find the causes of faces shortages of fresh water, Utah is a popular resort...

Utah is a popular resort and is being developed as a hot new spring break destination. Unfortunately, Utah regularly faces shortages of fresh water. Ann has the entrepreneurial spi

Transportation cost, a. Assign any value arbitrarily to a row or column var...

a. Assign any value arbitrarily to a row or column variable u or v j . generally a value 0 zero (zero) is assigned to the first row i, e, u = 0. b.Consider every occupied cell

Want help double-checking my homework, Summer Tyme, Inc., is considering a ...

Summer Tyme, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3.9 million. The fixed asset will be depreciated straight-l

Explaining each milestone using the smart criteria, Identify at least eight...

Identify at least eight milestones for WBS and A Gantt chart. Write a one-page paper describing each milestone using the SMART criteria. Discuss how determining these milestones mi

What is the difference among personal and business ethics, What is the diff...

What is the difference between personal and business ethics?

What deliver the message to management, Please give a detailed explanation ...

Please give a detailed explanation for the answer for the following scenario: As the manager of a plant, you have seen production increase by 20% over the past year, but you have a

Explain supply chain management solution, Describe for Bill what a Supply C...

Describe for Bill what a Supply Chain Management (SCM) solution would look like for his UMUC Pizza business and how his business could benefit from implementing an SCM solution

Explain how is ace products organized, Steffi Graf has assumed leadership o...

Steffi Graf has assumed leadership of Ace Products after many years of loyal service. Ace Products is an international manufacturer of copiers, printers, and fax machines. Historic

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