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

Lean synchronization, what are the wastes and how to overcome them in an or...

what are the wastes and how to overcome them in an organisation?

Explain how to create a living, What would you suggest to companies on how ...

What would you suggest to companies on how to create a living, adapting marketing plan?

Explain the options a manager has to stimulate change, What are the options...

What are the options a manager has to stimulate change? Give an example of each. What is meant by the "Calm Waters metaphor?; the "White Rapids "metaphor? What internal and externa

What is network program rating, Nielsen ratings are very important to both ...

Nielsen ratings are very important to both advertisers and television programmers because the cost of television advertising time is based on this rating. A show's rating is the nu

General model of the operations function, General Model of the Operations F...

General Model of the Operations Function This figure illustrates the basic concept of the operations function. Firstly inputs are transformed (converted) to outputs with the m

Explain women in top leadership positions, How can the inclusion of women i...

How can the inclusion of women in top leadership positions in local and national unions be increased?

Explain how are the quality of health care, How are the quality of health c...

How are the quality of health care and excellence in customer service related to each other?

Why is the eoq model important, 1. The annual demand for university student...

1. The annual demand for university students style note pads is 10,000 units. The supplier operates the business 300 days per year and delivers over five working days. Calculate th

Opm, Transformation process

Transformation process

OPERATTION MANAGEMENT, DISCUSS THE ADVISABILITY OF USING MODULAR ASSEMBLIES...

DISCUSS THE ADVISABILITY OF USING MODULAR ASSEMBLIES IN MANFACTURING

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