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

Scope of production and operation management , Scope of Production and Oper...

Scope of Production and Operation Management Production management mainly associated with the factory management as the problem of production crept with the development of facto

Product layout, how to identify layout ex holidays resort

how to identify layout ex holidays resort

Explain prohibiting the replacement of economic strikers, What are the econ...

What are the economic and social consequences of prohibiting the replacement of economic strikers?

Communication - customer satisfaction and service quality, Communication - ...

Communication - Customer Satisfaction and Service Quality Involves keeping customers informed in language they can understand and listening to them. It may mean the company ha

Memo motion and micro motion recording, Memo Motion and Micro Motion Record...

Memo Motion and Micro Motion Recording Originally based on cine-photography, nowadays video-recording technology is used to record patterns of movement in process activities.

Describe implications for the video game industry, Case Study- Implications...

Case Study- Implications for the Video Game Industry To consider the viability of Nintendo's new strategy, the CEO of Nintendo, has brought you in as a consultant. Your task is

Explain the affidavit, Which section of the project charter signed by spons...

Which section of the project charter signed by sponsor, project manager and core team members typically describes decision authority and the expected commitment for each of these k

Explain sells radio frequency inventory, National Scan, Inc., sells radio f...

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Month/Sales (000) Units Feb 16 Mar.17 Apr. 11 May. 29 Jun. 19 Jul

Economical management of a company, Consider a fast-food restaurant that is...

Consider a fast-food restaurant that is trying to improve its service during the 12:00 - 2:00 lunch period.  Right now the restaurant employs 5 different single-channel queues, but

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