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 what is the wacc, Midwest Electric Company (MEC) uses only debt and...

Midwest Electric Company (MEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 10% as long as it finances at its target capital struct

Travael chart, I want some project about travel chart.

I want some project about travel chart.

Define challenges of managers providing accurate feedback, Assess the chall...

Assess the challenges of managers providing accurate, timely, and effective feedback to employees. Recommend how managers can overcome any two of the challenges you identified.

Explain the scope of an external customers project, Project sponsors within...

Project sponsors within the contractors company have the authority to change the scope of an external customers project as they see fit. Answer Have the authority to change t

Explain lean prospective and identify the types of waste, Think about any c...

Think about any class (undergraduate or graduate) in which you worked on a class project. Think about the process you went through in order to complete this final project. a. li

Explain what is communication, Q1. What is communication? define it in your...

Q1. What is communication? define it in your own words Q2. Describe the characteristics of effective business communication and give examples Q3. Sould a researcher always ob

Explain if overachievement is acceptable, If overachievement is acceptable,...

If overachievement is acceptable, the appropriate di+ variable can be dropped from the objective function.

Explain different steps of the supply process, When concerned with project ...

When concerned with project procurement management regarding a project, list the different steps of the supply process and reasons why or why not the project would have been more s

Disparate impact exists hiring records, If a plaintiff proves that a dispar...

If a plaintiff proves that a disparate impact exists, an organization may then defend its employment by showing validation or _______________. a. business necessity b. hiring recor

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