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

What are pros as well as cons of updating the product design, Since its rel...

Since its release in 2001, the iPod has become a music player phenomenon. In your opinion, how would the QFD approach have helped Apple in developing the iPod? What are the limi

Operations strategy in financial services, According to Macintosh (2007), t...

According to Macintosh (2007), the greatest challenge facing modern managers is to raise the quality and productivity of service work. Or Many prominent managerial authors argue th

Explain marketing is considered both an art and a science, Marketing is con...

Marketing is considered both an art and a science. How do the 4Ps, or marketing mix, help us bridge the gap between art and science? a. Marketing is about advertising.

Explain what are the four steps in the basic approach, What are the four st...

What are the four steps in the basic approach to process design that some companies use

Explain the leadership styels of freed hammond, Identify the leadership sty...

Identify the leadership styels of freed Hammond and May Allison. Apply several of the leadership models to the case, such as the contingency model and the Hersey Balanced situation

Find the net present value, The company is considering a capital expenditur...

The company is considering a capital expenditure of $480,000. It has an estimated life of 4 years and no salvage value. The estimated net income and new cash flow from the project

Define personal selling techniques be applied at target, How can personal s...

How can personal selling techniques be applied at target? Provide specific examples to support your response.

Define how create a positive climate within the organization, An organizati...

An organization's culture can be a debilitating impediment to the development and implementation of its strategic plan. Discuss the role of culture along with specific strategies

Explain what is the expected project length, Task time estimates for the mo...

Task time estimates for the modification of an assembly line at Jim Goodale's Carbondale, Illinois, factory are as follows- a) 6.0 - b) 7.2 - c) 5.0 a d) 6.0 b,c e)

Explain internal resources and capabilities, Analyze Procter & Gamble's (Ca...

Analyze Procter & Gamble's (Case 8) resources and capabilities as well as its structures and systems. Internal resources and capabilities. How should P&G's strengths be leverage

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